Isaac Ltd is a company which buys agricultural produce from wholesale suppliers for retail to the general public. It is preparing its financial statements for the year ending 30 September 20X4 and is considering its closing inventory.

In addition to IAS 2 Inventories, which of the following accounting standards may be relevant to determining the figure to be included in its financial statements for closing inventories?

At what amount is a biological asset measured on initial recognition in accordance with IAS 41 Agriculture?

How is a gain or loss arising on a biological asset recognised in accordance with IAS 41?

Caminas Co has the following products in inventory at the year end.

At what amount should total inventory be stated in the statement of financial position?

t 31 March 20X7 Tentacle Ltd had 12,000 units of product W32 in inventory, included at cost of $6 per unit. During April and May 20X7 units of W32 were being sold at a price of $5.40 each, with sales staff receiving a 15% commission on the sales price of the product.

At what amount should inventory of product W32 be recognised in the financial statements of Tentacle Ltd as at 31 March 20X7? $_______

Note. You are not required to put $ sign nor any coma. (e.g. 1000)

Which of the following statements about IAS 2 Inventories are correct?

1. Production overheads should be included in cost on the basis of a company's actual level of activity in the period.
2. In arriving at the net realisable value of inventories, settlement discounts must be deducted from the expected selling price.
3. In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable.
4. It is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.

In which of the following situations is the net realisable value of an item of inventory likely to be lower than its cost?

Which of the following is NOT the outcome of a biological transformation according to IAS 41?

In preparing financial statements for the year ended 31 March 20X6, the inventory count was carried out on 4 April 20X6. The value of inventory counted was $36 million. Between 31 March and 4 April goods with a cost of $2.7 million were received into inventory and sales of $7.8 million were made at a mark-up on cost of 30%.

Using the drop down box. select at what amount inventory should be stated in the statement of financial position as at 31 March 20X6?