The following inventory information was taken from the records of GlobeKom Ltd.: Under IAS 2, what should the balance sheet report for Inventory?

Question

The following inventory information was taken from the records of GlobeKom Ltd.:  Under IAS 2, what should the balance sheet report for Inventory?

Quizplus · Accepted Answer

The balance sheet should report inventory at the lower of cost and net realizable value. Based on the information provided, the cost of inventory is $9,500 (beginning inventory of $8,500 + purchases of $12,000 - cost of goods sold of $11,000). Therefore, the balance sheet should report inventory at $9,500.

The Following Inventory Information Was Taken from the Records of GlobeKom