Review Questions Annual Report for Inventory Maple Leaf Foods

1. What method is used to value inventory? (note 3(i))

Inventory is valued at the lower of cost and net realizable value. The cost is determined
through FIFO, first in first out basis.

2. How is the cost of inventory determined? (note 3(i))

The cost is determined through FIFO, first in first out basis.

3. What is included in the cost of inventory? (note 3(i))

The cost of inventory includes direct product costs, direct labour, and an allocation of
variable and fixed manufacturing overhead, including depreciation

4. At what value are biological assets transferred into inventory? (note 3(j))

Biological assets are valued at cost less accumulated depreciation and any accumulated
impairment losses.

5. What are the different types of inventory? (note 5)

Different types of inventory include the raw materials, work in process, finished goods,
packaging and spare parts.

6. What account is adjusted for the writedown to inventory? (note 5)

Costs of goods sold is adjusted for the write down to inventory