Answer :
Answer:
Mountain bikes $6,050
Skateboards $4,550
Gliders $18,200
Explanation:
The accounting standard for Inventory under IFRS IAS 2 requires that inventory be recognized at cost which includes all the cost incurred to bring the item of inventory to a state or place where the item of inventory becomes available for sale.
These costs includes cost of purchase, freight, Insurance cost during transit etc.
Subsequently, inventory is to be carried at the lower of cost or net realizable value.
Product Quantity Cost per Unit Market per Unit
Mountain bikes 11 $ 600 $ 550
Skateboards 13 $ 350 $ 425
Gliders 26 $ 800 $ 700
Using lower of cost or market for inventory applied separately to each product
Product Quantity Lower of Cost or market per Unit
Mountain bikes 11 $ 550
Skateboards 13 $ 350
Gliders 26 $ 700
Ending inventory balance for;
Mountain bikes = 11 * $550
= $6,050
Skateboards = 13 * $350
= $4,550
Gliders = 26 * $700
= $18,200