Inventories (IAS 2)
ICAN Financial Accounting

QUESTION 1 Adekunle Brothers Nigeria Limited (ABNL) is a manufacturing company based in Kano, Nigeria, that produces industrial chemicals. At its financial year-end of 31 December 2023, the company's…

QUESTION 2 Oluwafemi Superstore Plc (OSP) is a large retail chain with outlets across Lagos, Abuja, and Port Harcourt. The company adopts the periodic inventory system. The following transactions rel…

QUESTION 3 Chukwuemeka Agro-Processing Industries Limited (CAPIL) is an agro-allied company listed on the Nigerian Exchange Group (NGX). It processes cassava into various products including cassava f…

Which of the following costs should be EXCLUDED from the cost of inventories under IAS 2?

Zenith Manufacturing Limited purchases raw materials at a list price of ₦850,000. The supplier grants a trade discount of 10% and a settlement discount of 2% if payment is made within 14 days. The com…

Abuja Furniture Works Plc manufactures custom chairs. For a batch of 500 chairs, the following costs were incurred: Direct materials ₦2,500,000; Direct labour ₦1,200,000; Variable production overheads…

Lagos Chemicals Plc uses the weighted average cost method for inventory valuation. The following transactions occurred during October 2024: Opening inventory 200 units at ₦1,500 per unit; Purchase on …

Eko Retailers Limited has the following inventory data at its year-end: Cost ₦320,000; Estimated selling price ₦380,000; Estimated costs to complete ₦30,000; Estimated selling costs ₦25,000. In accord…

Eko Retailers Limited has the following inventory data at its year-end: Cost ₦350,000; Estimated selling price ₦380,000; Estimated costs to complete ₦35,000; Estimated selling costs ₦20,000. In accord…