Ex 1				Ex 2			Ex 3					Ex 4						Ex 5															
								cost	NRV	BV									Units	Unit cost	NRV	BV											
Db	Stock	" 40,000    "		Cost	495		ford	" 2,300    "	" 3,140    "	" 2,300    "		FIFO						Raw materials	" 5,000    "	25	25	" 125,000    "											
Cr	AP	" 40,000    "					rover	" 4,500    "	" 3,900    "	" 3,900    "			Units	Price	Cost			WIP	" 2,000    "	30	39.5	" 60,000    "											
							renault	 600    	 750    	 600    		Purchase	800	220	" 176,000    "			Finished products	" 1,000    "	35	see workings	" 32,000    "							Db	Impairment loss	" 3,000    "		
Db	AP	" 5,000    "					toyota	" 6,800    "	" 8,900    "	" 6,800    "		Purchase	200	180	" 36,000    "							" 217,000    "		Workings:					Cr	Stock	" 3,000    "		
Cr	Discount received (PL)	" 5,000    "						" 14,200    "	" 16,690    "	" 13,600    "		Sale	900		" 194,000    "	(COS)								Cost (unit)	NRV (unit)	min	Total						
															" 18,000    "	Closing balance							700	35	45	35	" 24,500    "						
							"To be reported at lower of cost and NRV, i.e."					Average											300	35	25	25	" 7,500    "					Before BS date	After impairment testing
							ford	" 2,300    "					Units	Price	Cost												" 32,000    "				value of stock	" 220,000    "	" 217,000    "
							rover	" 3,900    "				Purchase	800	220	" 176,000    "			Ex 6															
							renault	 600    				Purchase	200	180	" 36,000    "			Total costs of A	" 98,000    "	net costs approach = total costs of production - proceeds from sale of scrap in auction													
							toyota	" 6,800    "				Sale	900		" 190,800    "	(COS)		Unit costs of A	 19.60    														
								" 13,600    "							" 21,200    "	Closing balance																	
																		Total cost of B	" 2,000    "														
						Db	Impairment loss in PL	 600    										Unit cost of B	 2.00    														
						Cr	Stock (BS)	 600    																									
																																	
																																	
		           																															
																																	
																		Ex 7															
																		Sales ratio of A	38%														
																		Sales ratio of B	62%														
																																	
																		Total costs of A	" 115,385    "														
																		Unit costs of A	 23.08    														
																																	
																		Total costs of B	" 184,615    "														
																		Unit costs of B	 46.15