1.Neville has only two items of inventory on hand at its reporting date.

Item 1 - Materials costing $24,000 bought for processing and assembly for a customer

under a 'one off' order which is expected to produce a high profit margin. Since buying this

material, the cost price has fallen to $20,000.

Item 2 - A machine constructed for another customer for a contracted price of $36,000.

This has recently been completed at a cost of $33,600. It has now been discovered that, in

order to meet certain health and safety regulations, modifications at an extra cost of $8,400

will be required. The customer has agreed to meet half the extra cost.

Calculate the total value of these two items of inventory in the statement of financial

position.