The Following Information Relates to the Total Production Costs and Estimates

question 41

Multiple Choice

The following information relates to the total production costs and estimates of realisable value for a line of water pistols produced by Splash Happy Co Ltd. $$\begin{array} { | l | r | r | r | r | } \hline { \text { Item } } & \begin{array} { c } \text { Production cost } \\\$ 000\end{array} & \begin{array} { c } \text { Sales proceeds } \\\$ 000\end{array} & \begin{array} { c } \text { Packaging costs } \\\$ 000\end{array} & \begin{array} { c } \text { Transport costs } \\\$ 000\end{array} \\\hline \text { Big Bang } & 8 & 17 & 5 & 2 \\\hline \text { Little } & 10 & 13 & 1 & 1 \\\hline \text { Splash } & 19 & 25 & 4 & 3\\\hline\end{array}$$ Packaging and transport costs are necessarily incurred in order to be able to sell the inventory.What is the value of the inventory in accordance with IAS 2?

• A)$37 000
• B)$21 000
• C)$39 000
• D)$36 000

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Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Coping Mechanism

Psychological strategies that individuals use to manage stress or adversity.

Social Support Systems

Networks of individuals, groups, or institutions that provide psychological and material assistance to people.

Type A Behavior

A personality trait characterized by high levels of competitiveness, impatience, and aggressiveness.