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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Which of the following should not be taken into account Problem 10-33 Multiple choice (IFRS) when determining the cost of inventory? . Storage costs- of part-finished goods b. Trade discounts " Recoverable purchase taxes : Lmport duties on shipping of inventory inward , The cost of inventory does not include a. Salaries of factory staff b. Storage cost necessary in the production process before a further production stage 6. Abnormal amount of wasted materials d. Irrecoverable purchase taxes 3. Which of the following costs of conversion cannot be included in cost of inventory? a. Cost of direct labor b. Factory rent and utilities c. Salaries of sales staff d. Factory overhead based on normal capacity 4. Which of the following should be taken into account when determining the cost of inventory? a. Storage cost of part-finished goods b. Abnormal freight in c. Recoverable purchase tax d. Interest on inventory loan 3. Costs incurred in bringing the inventory to the present location and condition include * Cost of designing product for specific customers D. Abnormal amount of wasted material C. Storage cost not necessary in the production process before a further production stage d. Distribution cost
Transcribed Image Text:1. Which of the following should not be taken into account Problem 10-33 Multiple choice (IFRS) when determining the cost of inventory? . Storage costs- of part-finished goods b. Trade discounts " Recoverable purchase taxes : Lmport duties on shipping of inventory inward , The cost of inventory does not include a. Salaries of factory staff b. Storage cost necessary in the production process before a further production stage 6. Abnormal amount of wasted materials d. Irrecoverable purchase taxes 3. Which of the following costs of conversion cannot be included in cost of inventory? a. Cost of direct labor b. Factory rent and utilities c. Salaries of sales staff d. Factory overhead based on normal capacity 4. Which of the following should be taken into account when determining the cost of inventory? a. Storage cost of part-finished goods b. Abnormal freight in c. Recoverable purchase tax d. Interest on inventory loan 3. Costs incurred in bringing the inventory to the present location and condition include * Cost of designing product for specific customers D. Abnormal amount of wasted material C. Storage cost not necessary in the production process before a further production stage d. Distribution cost
7. A property developer must classify properties that it holds 6. Inventories encompass all of the following, except a. Merchandise purchased by a retailer b. Land and other property not held for sale c. Finished goods produced d. Materials and supplies for use in production 7. A property developer must classify properties that it hold. for sale in the ordinary course of business as a. Inventory b. Property, plant and equipment c. Financial asset •d. Investment property 8. Factory supplies to be consumed in the production process are reported as a. Inventory b. Property, plant and equipment c. Investment property d. Prepaid expenses 9. Which of the following should not be reported as inventory? a. Land acquired for resale by a real estate firm b. Shares and bonds held for resale by a brokerage firm c. Partialy completed goods held by a manufacturing entity d. Machinery acquired by a manufacturing entity 10. When determining the cost of an inventory, which of the following should not be included? a. Interest on loan obtained to purchase the inventory b. Commission paid when inventory is purchased c. Labor cost of the inventory when manufactured d. Depreciation of plant equipment used in manufacturing
Transcribed Image Text:7. A property developer must classify properties that it holds 6. Inventories encompass all of the following, except a. Merchandise purchased by a retailer b. Land and other property not held for sale c. Finished goods produced d. Materials and supplies for use in production 7. A property developer must classify properties that it hold. for sale in the ordinary course of business as a. Inventory b. Property, plant and equipment c. Financial asset •d. Investment property 8. Factory supplies to be consumed in the production process are reported as a. Inventory b. Property, plant and equipment c. Investment property d. Prepaid expenses 9. Which of the following should not be reported as inventory? a. Land acquired for resale by a real estate firm b. Shares and bonds held for resale by a brokerage firm c. Partialy completed goods held by a manufacturing entity d. Machinery acquired by a manufacturing entity 10. When determining the cost of an inventory, which of the following should not be included? a. Interest on loan obtained to purchase the inventory b. Commission paid when inventory is purchased c. Labor cost of the inventory when manufactured d. Depreciation of plant equipment used in manufacturing
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