Assume That Darcy Industries Had the Following Inventory Values:Inventory Cost

question 30

Multiple Choice

Assume that Darcy Industries had the following inventory values:Inventory cost (on December 31, 2014) = $500Inventory market (on December 31, 2014) = $450Inventory net realizable value (on December 31, 2014) = $440Inventory market (on June 30, 2015) = $520Inventory net realizable value (on June 30, 2015) = $525Under IFRS, what is the inventory carrying value on June 30, 2015?

• A) $500
• B) $520
• C) $525
• D) $440

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Definitions:

Mass Production

A manufacturing technique that produces large quantities of goods efficiently by using assembly lines or automation technology.

Exchange

The act of giving one thing and receiving another, especially of the same type or value, in return.

Division of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Mass Production

The manufacture of large quantities of standardized products, often using assembly line or automation technologies.