Moondoggie Ltd holds four lines of inventory. The total production costs of each item are shown below. Apart from the production costs, estimates of future packaging costs and transportation costs are provided. It is considered that the items are not saleable unless they are packaged and transported to market.

REQUIRED

Determine the closing value of inventory for Moondoggie Ltd.

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Production costs Transport costs Packaging costs Sales proceeds ($) 9 000 5 000 13 000 25 000 ($) Wet-suits 5 000 Blocks of wax 3 000 Flippers 10 000 Board shorts 20 000 ($) 1 000 1 000 2 000 2 000 ($) 1 000 2 000 1 500 2 500