Q7 You are having a debate with the assistant about certain costs that can be included in the cost of inventories, as he is unsure of which ones specifically. What would you tell him could be included? Select the correct options, and then click Submit. Storage costs of material to be used in production Transportation costs to move inventory from one retail store to another Depreciation maintenance of production equipment Interest expense incurred during the production period of inventory Abnormal production costs Q8 You are mentoring trainee accountants. You asked them to write a number of statements about IAS 2. Which have they got correct? Select the correct options, and then click Submit Upon the sale of inventory an entity must recognize an expense for the carrying amount of the inventory. Inventories can be allocated to other asset accounts The amount of any write-down of inventory should be deferred and amortized LIFO can be used as a cost formula to measure inventory in IAS 2 Allocation of fixed overhead to inventory is adjusted using the level of production as a basis. Unallocated overheads are deferred so they can be allocated in future periods. Interest expense incurred during the production period of inventory