IAS-2 : Merchandise Inventory

The lower-of-cost-or-net realizable value rule.

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

CMA December 2019

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

2
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

3
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

4
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

5
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

6
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

7
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

8
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 IAS-2 : Merchandise Inventory

MD. SHARIFUL ISLAM (TUTUL),CMA FINAL, CELL 01771414539

9
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

Example-1 : Inventory Valuation-Periodic System(Video Lecture Provided)

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

 Example-2 Inventory Valuation-Perpetual System (Video provided)

Instructions
Under a perpetual inventory system, determine the cost of inventory on hand at March
31 and the cost of goods sold for March under (a) FIFO, (b) LIFO, and (c) average-
cost/moving average methods.

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

 Learning Model-1: Inventory Valuation-Periodic System

You are provided with the following information for Sohag Inc. for the month
ended June 30, 2010. Sohag uses the periodic method for inventory.

Solution:

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

 Learning Model-2 : Inventory Valuation-Perpetual System

Jony Inc. is a retailer operating in British Columbia. Jony uses the perpetual
inventory method. All sales returns from customers result in the goods being
returned to inventory; the inventory is not damaged. Assume that there are no
credit transactions; all amounts are settled in cash.
You are provided with the following information for Jony Inc. for the month of
January 2010.

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

Solution:

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

7
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

8
EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

 Learning Model-3
The management of Moner Inc. is reevaluating the appropriateness of using its
present inventory cost flow method, which is average-cost.The company requests
your help in determining the results of operations for 2010 if either the FIFO or the
LIFO method had been used. For 2010 the accounting records show these data:

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

Solution:

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)
 Sheet-5 Merchandise Inventory-2

Type: LCM Rule

MD. SHARIFUL ISLAM (TUTUL), CELL 01714-162916(B ANKERS) 01771414539 (ICMABIANS)

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EDUCATIONAL CONSULTANT (FOR ICMAB STUDENTS ONLY)