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d. Alpha Ltd makes one standard article. You have been given the following information: i)...

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Accounting

d. Alpha Ltd makes one standard article. You have been given the following information: i) The inventory sheet at the year-end showed the following items Raw material: 100 tons of steel, with a cost of P 140 per ton and a current price of P 130 per ton Finished goods 100 finished units: cost of materials is 50 per unit, cost of labour is P 150 per unit and selling price is P 500 per unit completed. Finished goods For every 100 finished units, the labor cost is P 150, the material cost is P 50, and the unit sale price is P 500. Ten completed units with damage: P 200 will be needed to repair each unit, and P 500 will be the selling price when the repairs are completed. ii) Manufacturing overheads are 100% labour costs; selling and distribution expenses are P 60 per unit. Required a. State the fundamental principle of IAS 2 in valuing inventory (3 Marks) b. From the information in notes i and ii, state the amount to be included in the statement of financial position of Alpha in respect of inventory. (5 Marks)

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