Question # 4. (4+6) A) You are required to: (a) Explain the term "inventories" as defined by international standard IAS2. (b) List the costs which should be included when measuring the cost of inventories and identify any costs which should be excluded. (c) Explain the term "net realisable value in relation to inventories. (d) Explain the term "LCM (lower-of-cost-or-market)" in relation to inventories. B) M/S Multan Associates Imports resells five major brands of golf clubs, which are noted in the following table. At the end of its reporting year, M/S Multan Associates calculates its inventory at the lower of its cost or net realizable (LCM) value. The detail of inventory is given in following table: Unit Cost Rs.190 Quantity Product Line on Hand FS-240 1,000 GE-395 750 HF-150 200 IL-340 1,200 TX-300 800 140 Market per Unit Rs.230 170 120 160 215 135 280 200 Required: i) Construct table which reflect the yearend inventory values to be shown in balance- sheet based on LCM principle. 2) Also calculate the value of total loss of the M/s Multan Associates. 3) Record journal entry of the loss calculated in part 2