The Following Information Relates to the Total Production Costs and Estimates

question 46

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 AASB 102?

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

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Definitions:

Coronary Artery

An artery supplying blood to the heart muscle itself, essential for providing oxygen and nutrients.

Subclavian Artery

A major artery that supplies blood to the thorax, upper limbs, and head.

Anterior Tibial Arteries

Arteries that supply blood to the front part of the lower leg and foot.

Popliteal Artery

An artery located behind the knee, which supplies blood to the lower leg muscles.