Alpha Ltd makes one standard ar ticle. You have been given the following information:

1 The inventor y sheets at the year-end show the following items:

Raw materials:

100 tons of steel:

Cost £140 per ton Present price £130 per ton Finished goods:

100 finished units:

Cost of materials £50 per unit Labour cost £150 per unit Selling price £500 per unit 40 semi-finished units Cost of materials £50 per unit Labour cost to date £100 per unit Selling price £500 per unit (completed)

10 damaged finished units:

Cost to rectify the damage £200 per unit Selling price £500 per unit (when rectified)

2 Manufacturing overheads are 100% of labour cost.
Selling and distribution expenses are £60 per unit (mainly salespeople’s commission and freight charges).
Required:
From the information in notes 1 and 2, state the amounts to be included in the balance sheet of Alpha Ltd in respect of inventory. State also the principles you have applied.