Inventory Presentation and Disclosures Under IFRS & ASPE
Included in the December

question 87

Essay

Inventory presentation and disclosures under IFRS & ASPE
Included in the December 31 trial balance of Watershed Company are the following assets:
$$\begin{array} { l r l r } \text { Cash } & \$ 201,700 & \text { Work in process } & \$ 180,000 \\\text { Equipment (net) } & 1,314,000 & \text { Receivables (net) } & 320,000 \\\text { Prepaid insurance } & 55,600 & \text { Patents } & 114,000 \\\text { Raw materials } & 279,250 & \text { Finished goods } & 212,500\end{array}$$
Watershed Company presents its expenses by nature of costs instead of by function.
Instructions
Prepare the current assets section of the December 31 statement of financial position for Watershed Company.

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Definitions:

Bananas

A type of elongated, edible fruit produced by various kinds of large herbaceous flowering plants in the genus Musa.

Principle Of Diminishing Marginal Utility

The proposition that each successive unit of a good or service consumed adds less to total utility than did the previous unit.

Marginal Utility

The augmented utility or satisfaction a consumer experiences when they consume one more unit of a product or service.

Turkey

A large domesticated bird commonly raised for meat or eggs; also refers to the country located at the intersection of Europe and Asia known for its cultural heritage and strategic location.