389 Which of the following is excluded in the scope of PAS2 on Inventories?C. expensed directly into equity in the period in which the items are used.D. Land held for resale by subdivision company or real estate developerD. aggregated into the 'cost of goods sold' expense in the period in which the388. Which one of the following is included in the scope of PAS 2 but excluded from the395. Under PAS 2, items of inventory that are used by business enterprise asPAS 2, Inventoriesmeasurement rule?A Finished goods produced.B. Biological assets held for regular sale.C. Damaged merchandise inventory of a retailer.PRTC 0513C. Manufacturing suppliesA. Construction in progress.B.Inventories of a service provider. D. Raw materials390. Inventories under PAS 2 do not includeA. Construction-in-progress.B. Finished goods.C. Goods held for resale.D. Raw materials.391. Which may be included as part of the cost of inventories under PAS 2722A. Selling costs.B. Administrative costs.C. Costs of designing products for specific customers.D. Abnormal amounts of wasted materials, labor or other production costs392. Costs that are incurred in bringing the inventories to their present location adcondition are capitalized as cost of inventories and these includedistribution costB. cost of designing products for specific customers.C. abnormal amount of wasted material, labor and production cost.D. storage cost not necessary in the production process before a furtherproduction stage.393. Under PAS 2, the fixed production overhead is allocated to the inventory unis athe basis of the production facility'sA. actual capacity.B. ideal capacity.C. normal capacity.D. theoretical capacity.394. Abnormal spoilage in a manufacturing process should be charged toaccumulated profit or loss.B. manufacturing overhead applied. D. profit or loss.C. manufacturing overhead controlcomponents in a self-constructed property asset are required to beA. capitalized and depreciated.B.added to a 'property construction' provision accountitems are used. 396. Which of the following is least likely to be included in the cost of inventory?A Cost to store goods.B. Excise tax on goods purchased.C. Freight-inD. Purchase cost of goods.397. Which of the following conversion costs cannot be included in cost of inventory?Cost of direct labor.A.B. Salaries of sales staff.C. Production rent and utilities.D. Factory overhead based on normal capacity.398. Which of the following would not be included in the inventory amount reported on acompany's balance sheet?A.Items shipped out on consignment to another company.B.Items shipped today FOB shipping point, invoice had been mailed to thecustomeC. Items in the receiving department of the company, returned by the custormer,invoice has been mailed.D. Items purchased from a supplier and en route directly to a customer of thecompany; the term is FOB destination invoice received but not yet paid.399. A manufacturing company has which three basic types of inventory?A. Perpetual, periodic and estimated.B. Specific identification, FIFO and averaged cost.C.Raw materials, work in process, and finished goods.D. Finished goods, work-in-process, and ready-to-sell-merchandise.400. Which of the following should be included in inventory?A. Goods out on consignment.B. Goods held on consignment.C. Goods held for pick-up by the buyer.D. Goods-in-transit purchased FOB destination.401. What are consigned goods?A. Goods that are shipped but title transfers to the receiver.B. Goods that are shipped but title remains with the shipper.C. Goods have been segregated for shipment to a customer.D. Goods that are sold but payment is not required until the goods are sold.402. Inventory purchases are always recordedA. gross of cash discount.B. gross of trade discount.C. net of cash discount.D. net of trade discount.403. The Purchase Discounts Lost account may appear in the accounting records ifwhich method is used to account for purchase discounts.A. Allowance method.B. Gross price method.C. Net price method.D.Sales price method.61

PAS 2 (Inventory):- This standard helps in calculating the cost of inventory and also helps in…

PAS 2, Inventories 388 Which one of the following is included in the scope of PAS 2 but excluded from the measurement rule? A Finished goods produced. B. Biological assets held for regular sale. C. Damaged merchandise inventory of a retailer. PRTC 0513 D Land held for resale by subdivision company or real estate developer 389 Which of the following is excluded in the scope of PAS2 on Inventories? C. Manufacturing supplies A. Construction in progress. . B Inventories of a service provider. D. Raw materials 390. Inventories under PAS 2 do not include A. Construction-in-progress. B Finished goods. C. Goods held for resale. D. Raw materials. 391. Which may be included as part of the cost of inventories under PAS 222 A. Selling costs. B. Administrative costs. C. Costs of designing products for specific customers. D. Abnormal amounts of wasted materials, labor or other production costs 392 Costs that are incurred in bringing the inventories to their present location ad condition are capitalized as cost of inventories and these include A distribution cost B. cost of designing products for specific customers. C. abnormal amount of wasted material, labor and production cost. D. storage cost not necessary in the production process before a futhe production stage. 393. Under PAS 2, the fixed production overhead is allocated to the inventory unts a the basis of the production facility's A. actual capacity. B. ideal capacity. C. normal capacity D. theoretical capacity. 394. Abnormal spoilage in a manufacturing process should be charged to A accumulated profit or los. B. manufacturing overhead applied. D. profit or loss. C. manufacturing overhead control 395. Under PAS 2, items of inventory that are used by business enterprise a components in a self-constructed property asset are required to be A. capitalized and depreciated. B. added to a 'property construction' provision account C. expensed directly into equity in the period in which the items are used D. aggregated into the 'cost of goods sold' expense in the period in which e items are used.