E$8.3($LO $2,\backslash (3,4,11\backslash )($Inventoriable Costs$)$ The following is a list of items that may or may not be reported as inventory in an SFP:

$1.$ Goods out on consignment at another company's store

$2.$ Goods sold on an instalment basis

$3.$ Goods purchased f$.$o$.$b$.$ shipping point that are in transit at December $31$

$4.$ Goods purchased f$.$o$.$b$.$ destination that are in transit at December $31$

$5.$ Goods sold to another company, with the seller signing an agreement to repurchase the goods at a set price that covers all costs related to the inventory

$6.$ Goods sold where large returns are predictable

$7.$ Goods sold f$.$o$.$b$.$ shipping point that are in transit at December $31$

$8.$ Freight charges on goods purchased

$9.$ Freight charges on goods sold

$10.$ Factory labour costs incurred on goods that are still unsold

$11.$ Interest costs incurred for inventories that are routinely manufactured in large quantities

$12.$ Costs incurred to advertise goods held for resale

$13.$ Materials on hand and not yet placed into production by a manufacturing firm

$14.$ Supplies used in the office

$15.$ Raw materials on which a manufacturing firm has started production, but which are not completely processed

$16.$ Manufacturing supplies

$17.$ Goods held on consignment from another company

$18.$ Goods held on consignment by another company

$19.$ Costs identified with units completed by a manufacturing firm, but not yet sold

$20.$ Goods sold f$.$o$.$b$.$ destination that are in transit at December $31$

$21.$ Temporary investments in shares and bonds that will be resold in the near future

$22.$ Costs of uncleared land to be developed by a property development company

$23.$ Cost of normal waste or spoilage of raw materials during production

$24.$ Cost of waste and spoilage experienced above normal levels$-$that is$,$ abnormal levels of waste of raw materials

$25.$ Costs to store excess materials inventory for a manufacturer

$26.$ Costs to store wine as it ages for a wine producer

$27.$ Decommissioning costs incurred as a part of the extraction of minerals

Instructions

a$.$ Assuming that ASPE is followed, show which of these items would typically be reported as inventory in the financial statements. If an item should not be reported as inventory, show how it should be reported in the financial statements.

b$.$ How would your response to part $($a$)$ change under IFRS?