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? ect 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 and maintenance of production equipment Interest expense incurred during the production period of inventory Abnormal production costs Submit In which of the following circumstances would an inventory write-down be recognized or reversed? Select the correct options, and then click Submit. When inventory is damaged or has become obsolete and can no longer be used When prices of specific raw materials have declined but the prices of the related finished product remain above its cost to complete When the selling price less the selling costs of a finished product (NRV) is less than its carrying value When, at year-end, a company anticipates that market prices will recover for inventory that is currently carried at net realizable value None of the above Submit O Which of the following are accounted for under IAS 2? Select the correct options, and then click Submit. The cows of a cattle farmer The gold mineral reserves of a mining company WIP of a long-term construction contract Maturing wine in the cellars of a wine producer Clothing in the warehouse of a retailer Lumber of a wood distributor Submit IAS 2 Inventories | Question You are mentoring trainee accountants. You asked them to write a number of sta 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. Submit BE o F10