MCL has manufactured summerhouses for a number of years and has a well-developed costing system. In anticipation of the forthcoming year's budgeted demand for its prestige model, the Postcode Penthouse,

MCL has concentrated production on this one particular summerhouse. The standard costing information for the year ended 31 December 2012, which had been set on 1 January 2012, was as follows:

The costing department has supplied the following information regarding variances.
(i) A production fault occurred during August 2012, which resulted in a batch of doors being scrapped.
(ii) The price of raw materials increased on 1 November 2012.
(iii) A changed in working practices took effect from 1 October 2012, which increased direct labour pay rates.
(iv) The variances recorded for the Postcode Penthouse for the year ended 31 December 2012 are as follows:

\section*{Note}
A: adverse variance F: favourable variance \section*{Futher information}
(1) Information regarding inventories of the Postcode Penthouse and work in progress at 31 December 2012 was as follows:
Finished goods 2,000 units Work in progress 1,000 units Work in progress was \(100 \%\) complete as to raw materials, and \(50 \%\) complete as to direct labour and production overheads.
(2) The normal monthly level of production of 4,000 units was achieved throughout the year ended 31 December 2012. Completed summerhouses were sold on the first in first out basis.
1.3) Since the year end, the finished goods have all been sold to retailers at \(£ 3,800\) each, and the work in progress has all been completed and sold at a special price of \(£ 3,000\) each.
\section*{Required}
Prepare the inventory valuations at 31 December 2012 for inventories and work in progress, in accordance with IAS 2 Inventories.

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Cost per summerhouse Raw materials 800 Direct labour 1,000 Production overheads 1,200 Distribution costs 100