Accounting · IAS 2 Inventories

Bouani Co manufactures cycling equipment. It has a number of specialised frames in inventory which cost $20,000 to manufacture. These frames were manufactured following an order from a customer at an agreed selling price of $30,000. Due to recent technological advances, the current cost of manufacturing such frames is est imated to be $15, 000. Bouani Co also has an inventory of 3,000 pedals at a cost of $20 each. These have become damaged. If the company spends $5,000 to repair all of them, these could be sold for $21 each. Which TWO of the following statements regarding Bouani Co's inventory valuation are true? 1. The frames should be valued at $15,000 2. The frames should be valued at $20,000 3. The frames should be valued at $30,000 4. The pedals should be valued at $60,000 5. The pedals should be valued at $58,000 6. The pedals should be valued at $65,000