IAS 2 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Costs of purchase and production cost of inventories
Trading company: cost of purchase of an imported lot, FIFO and weighted average cost
Section 1 of 9
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IAS 2 workpaper
- Level
- Foundation
- Estimated time
- ≈ 40 min
- Progress
- 0 / 5 steps done (review excluded)
Context
Lumivia Distribution SAS (a fictitious entity) buys and resells L40 model LED lamps, all of the same nature and use. It imports its lamps from a foreign manufacturer and stores them in its Lyon warehouse before delivering them to DIY stores. You are preparing the financial statements for the year ended 31 December 20X1.
Assignment
Cost of inventories workpaper (cost of purchase).
Purpose of the workpaper
Determine the costs of purchase (price, duties and non-recoverable taxes, directly attributable costs, discounts deducted), allocate fixed overheads on the basis of normal capacity, classify the other costs (included or expensed), isolate the financing element of a deferred settlement and record the entries.
Questions of the file covered by this workpaper
- Calculate the cost of purchase of the lot received on 15 March 20X1.
- Record the entry for the receipt of the lot into inventories.
Documents in the file
Open the documents to pick out the relevant information.