1. Which of the following should not be taken into accountProblem 10-33 Multiple choice (IFRS)when determining the cost of inventory?. Storage costs- of part-finished goodsb. Trade discounts" Recoverable purchase taxes: Lmport duties on shipping of inventory inward, The cost of inventory does not includea. Salaries of factory staffb. Storage cost necessary in the production processbefore a further production stage6. Abnormal amount of wasted materialsd. Irrecoverable purchase taxes3. Which of the following costs of conversion cannot beincluded in cost of inventory?a. Cost of direct laborb. Factory rent and utilitiesc. Salaries of sales staffd. Factory overhead based on normal capacity4. Which of the following should be taken into accountwhen determining the cost of inventory?a. Storage cost of part-finished goodsb. Abnormal freight inc. Recoverable purchase taxd. Interest on inventory loan3. Costs incurred in bringing the inventory to the presentlocation and condition include* Cost of designing product for specific customersD. Abnormal amount of wasted materialC. Storage cost not necessary in the production processbefore a further production staged. Distribution cost 7. A property developer must classify properties that it holds6. Inventories encompass all of the following, excepta. Merchandise purchased by a retailerb. Land and other property not held for salec. Finished goods producedd. Materials and supplies for use in production7. A property developer must classify properties that it hold.for sale in the ordinary course of business asa. Inventoryb. Property, plant and equipmentc. Financial asset•d. Investment property8. Factory supplies to be consumed in the production processare reported asa. Inventoryb. Property, plant and equipmentc. Investment propertyd. Prepaid expenses9. Which of the following should not be reported as inventory?a. Land acquired for resale by a real estate firmb. Shares and bonds held for resale by a brokerage firmc. Partialy completed goods held by a manufacturing entityd. Machinery acquired by a manufacturing entity10. When determining the cost of an inventory, which of thefollowing should not be included?a. Interest on loan obtained to purchase the inventoryb. Commission paid when inventory is purchasedc. Labor cost of the inventory when manufacturedd. Depreciation of plant equipment used in manufacturing

Hi student Since there are multiple subparts, we will answer only first question.

Answered: Problem 10-33 Multiple choice (IFRS)…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 25CE: Effects of Inventory Costing Methods Refer to your answers for Filimonov Inc. in Cornerstone...

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Effects of Inventory Costing Methods Refer to the information for Tyler Company above. Required: 1. Which inventory costing method produces the highest amount for net income? 2. Which inventory costing method produces the lowest amount for taxes? 3. Which inventory costing method produces the highest amount for ending inventory? 4. How would your answers to Requirements 1-3 change if inventory prices declined during the period?
Lower of Cost or Market Merediths Appliance Store has the following data for the items in its inventory at the end of the accounting period: Required: 1. Compute the carrying value of Merediths ending inventory using the lower of cost or market rule applied on an item-by-item basis. 2. Prepare the journal entry required to value the inventory at lower of cost or market. 3. CONCEPTUAL CONNECTION What is the conceptual justification for valuing inventory at the lower of cost or market?
Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its inventory at year end: Required: 1. Compute the carrying value of the ending inventory using the lower of cost or market method applied on an item-by-item basis. 2. Prepare the journal entry required to value the inventory at lower of cost or market.
( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Choose and explain: a. P4,270,000 b. 4,170,000 Why defective materials returned to suppliers for replacement is not part of the computation for the cost of inventory?
12.Which of the following statements is correct regarding the direct method of accounting for any write down of inventories to its net realizable value (NRV)? a. An Allowance to Reduce Inventory to Net Realizable Value account is used to record inventory at the lower of cost and NRV. b. The beginning and ending inventories are measured at the lower of cost and NRV when determining the cost of goods sold for the period. c. The beginning and ending inventories are measured at cost when determining the cost of goods sold for the period. d. The decline in NRV of inventory is reported as an other expense while recovery in NRV of inventory is reported as an other income.
In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under the lower-of-cost-or-market rule. Cases 00100 00200 00300 00400 00500 Cost $15.90 $16.10 $15.90 $15.90 $15.90 Net realizable value 14.50 19.20 15.20 10.40 16.40 Net realizable value less normal profit 12.80 17.60 13.75 8.80 14.80 Market (replacement cost) 14.80 17.20 12.80 9.70 16.80
Bramble Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,900 $3.65 $3.42 $5.13 $0.40 $1.43 1333 1,600 3.08 2.62 3.99 0.57 0.57 1426 1,500 5.13 4.22 5.70 0.46 1.14 1437 1,700 4.10 3.53 3.65 0.29 1.03 1510 1,400 2.57 2.28 3.71 0.91 0.68 1522 1,200 3.42 3.08 4.33 0.46 0.57 1573 3,700 2.05 1.82 2.85 0.86 0.57 1626 1,700 5.36 5.93 6.84 0.57 1.14 From the information above, determine the amount of Bramble Company inventory.
26. The following data refer to Issue Company’s ending inventory: Item code Quantity Unit Cost Unit Market Small 100 $56 $59 Medium 420 38 44 Large 600 44 42 Extra-Large 220 64 67 How much is the inventory if the lower of cost or market rule is applied to each item of inventory?
Sheffield Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,300 $3.74 $3.51 $5.27 $0.41 $1.46 1333 1,000 3.16 2.69 4.10 0.59 0.59 1426 900 5.27 4.33 5.85 0.47 1.17 1437 1,100 4.21 3.63 3.74 0.29 1.05 1510 800 2.63 2.34 3.80 0.94 0.70 1522 600 3.51 3.16 4.45 0.47 0.59 1573 3,100 2.11 1.87 2.93 0.88 0.59 1626 1,100 5.50 6.08 7.02 0.59 1.17 From the information above, determine the amount of Sheffield Company inventory. The amount of Sheffield Company’s inventory
Coronado Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,800 $3.58 $3.36 $5.04 $0.39 $1.40 1333 1,500 3.02 2.58 3.92 0.56 0.56 1426 1,400 5.04 4.14 5.60 0.45 1.12 1437 1,600 4.03 3.47 3.58 0.28 1.01 1510 1,300 2.52 2.24 3.64 0.90 0.67 1522 1,100 3.36 3.02 4.26 0.45 0.56 1573 3,600 2.02 1.79 2.80 0.84 0.56 1626 1,600 5.26 5.82 6.72 0.56 1.12 From the information above, determine the amount of Coronado Company inventory. The amount of Coronado Company’s inventory $enter the dollar amount of Coronado Company's inventory

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Problem 10-33 Multiple choice (IFRS) when determining the cost of inventory? uhich of the following should not be taken into account . Storage costs- of part-finished goods b. Trade discounts . Recoverable purchase taxes i Import duties on shipping of inventory inward