Which of the following costs should be included in valuing the inventories of a

manufacturing company?

(i) Carriage inwards

(ii) Carriage outwards

(iii) Depreciation of factory plant

(iv) General administrative overheads

What is the effect of overstated closing inventory?

For the financial year to 31 December Year 9, a business entity had opening

inventory of 27,000,000 KHR and closing inventory of 47,000,000 KHR.

Which of the following accounting entries should be made in the accounting

records of the business entity at the end of the financial year, in order to prepare

the statement of financial position and the statement of profit or loss?

What is the effect of overstated opening inventory?

The following is given in relation to raw materials:

O = Opening Inventory

P = Purchases

R = Purchases returns

C = Carriage inwards

I = Import duties

Z = Closing Inventory

The cost of raw materials available for use is

Which of the statements are correct?

Pheakdei runs a sole trader business selling office furniture. On 12th August

20X9, he employed his wife as a marketing assistant for the business and took a

desk from the storeroom for her to use in the office.

What is the double entry for this transaction?

What adjusted inventory figure should be recognised as an end-of-year

adjustment at 31st December 20X8?

A company with an accounting date of 31st October carried out a physical check

of inventory on 4th November 20X9, leading to an inventory value at cost at this

date of 483,700,000 KHR.

Between 1st November 20X9 and 4th November 20X9 the following transactions

took place:

(1) Goods costing 38,400,000 KHR were received from suppliers.

(2) Goods that had cost 14,800,000 KHR were sold for 20,000,000 KHR.

(3) A customer returned, in good condition, some goods which had been sold

to him in October for 600,000 KHR and which had cost 400,000 KHR.

(4) The company returned goods that had cost 1,800,000 KHR in October to

the supplier, and received a credit note for them.

What adjusted inventory figure should be recognised as an end-of-year

adjustment at 31st October 20X9?

Which of the following costs should be included in valuing inventories of finished

goods held by a manufacturing company, according to CIAS 2 Inventories?

(1) Carriage inwards

(2) Carriage outwards

(3) Depreciation of factory plant

(4) Accounts department costs relating to wages for production employees

Which of the following are correct?

1 The value of inventory in must be as close as possible to net realisable

value.

2 The valuation of finished goods inventory should include production

overheads.

3 Production overheads included in valuing inventory should be calculated by

reference to the company’s normal level of production during the period.

4 In assessing net realisable value, inventory items must be considered

separately, or in groups of similar items, not by taking the inventory value

as a whole.

What journal entry is required to record goods taken from inventory by the owner

of a business, assuming a period-end system of accounting for inventory?

A business had an opening inventory of 180 million KHR and a closing inventory

of 220 million KHR in its financial statements for the year ended 31 December

20X9.

Which of the following entries for the opening and closing inventory figures are

made when completing the financial records of the business?

CIAS2 Inventories defines the extent to which overheads are included in the

cost of inventories of finished goods.

Which of the following statements about the CIAS2 requirements in this area are

correct?

1 Finished goods inventory may be valued on the basis of labour and

materials cost only, without including overheads.

2 Carriage inwards, but not carriage outwards, should be included in

overheads when valuing inventories of finished goods.

3 Factory management costs should be included in fixed overheads allocated

to inventories of finished goods.

At 30th September 20X8 the closing inventory of a company amounted to

386,400,000 KHR. The following items were included in this total at cost:

(1) One thousand items which had cost 18,000 KHR each. These items were

all sold in October 20X8 for 15,000 KHR each, with selling expenses of

800,000 KHR.

(2) Five items which had been in inventory since 2008, when they were

purchased for 100,000 KHR each, sold in October 20X8 for 1,000,000 KHR

each, net of selling expenses.

What figure should appear in the company’s trial balance at 30th September

20X8 for closing inventory?

In preparing its financial statements for the current year, a company’s closing

inventory was understated by 300,000 KHR.

What will be the effect of this error if it remains uncorrected?

A company received a delivery of goods on 28 December 20X8 which was

included in inventory at 31 December 20X8. The invoice for the goods was

recorded in January 20X9. What effect does this have on the business?

A sole trader took some goods costing 800,000 KHR from inventory for his own

use. The normal selling price of the goods is 1,600,000 KHR.

Which of the following journal entries would correctly record this?

The closing inventory at cost of a company at 31 January 20X9 amounted to

284,700,000 KHR. The following items were included at cost in the total:

(1) 400 coats that had cost 80,000 KHR each and normally sold for 150,000

KHR each. Owing to a defect in manufacture, they were all sold after the

balance sheet date at 50% of their normal price. Selling expenses

amounted to 5% of the proceeds.

(2) 800 skirts that had cost 20,000 KHR each. These too were found to be

defective. Remedial work in February 20X9 cost 5,000 KHR per skirt, and

selling expenses for the batch totalled 800,000 KHR. They were sold for

28,000 KHR each.

What should the inventory value be according to CIAS 2 Inventories after

considering the above items?

What are the correct journal entries to record inventory at the year end?

Which of the following statements are correct for the purpose of inventory

valuation in the statement of financial position?

1 Finished goods inventories may be valued on the basis of labour and

materials cost only, without including overheads.

2 It may be acceptable for inventory to be valued at selling price minus the

estimated profit margin.

3 Inventory should be valued at the lowest of net realisable value,

replacement cost and historical cost.

4 According to CIAS2 Inventories, both average cost and first-in, first-out

(FIFO) are acceptable methods of deciding the cost of inventories.

Which of the following is not an example of a year-end adjustment?