Inventories

Inventories fall under the which heading in the Statement of Financial Position?

• Liabilities

• Non-current assest

• current assets

• Equity

Which of the following constitute as Inventories?

• Only finished Goods

• Only goods in Production(Work in Progress)

• Finished goods,goods in production(work in progress) and raw materials

• raw materials only

cost price of inventories excludes VAT but includes discount?

• True

• False

Cost of conversion is made up of:

• Direct labour costs and Overheads

• Direct labour costs and Overheads

• Direct labour costs and manufacturing Overheads

• None of the above

In a periodic inventory system, purchase of raw materials is recorded as purchases

• True

• False

In a periodic inventory system, delivery costs form part of purchases

• True

• False

The Cost of Sales account when goods are sold under the periodic inventory system only exists at year end

• True

• False

Returns in and Returns Out exist for both the perpetual and periodic inventory system

• True

• False

Shortage of inventory in a periodic inventory system is included in?

• Liabilities

• Other Expenses

• Bad debts

• Cost of Sales

The following form part of cost formulas:

• Fifo

• Wam

• Sim

• Retail Method

• Lifo