A Shadur Retail has the following purchases and sales of a particular product line. Units Purchase Units Selling purchased price per sold price per unit unit Rs.000 Rs.000 2 December 100 500 60 530 16 December 60 503 80 528 30 December 70 506 50 526 14 January 50 509 70 524 28 January 80 512 50 522 11 February 40 515 520 At 31 December the physical inventory was 150 units. The cost of inventories is determined on a FIFO basis. Selling and distribution costs amount to 5% of selling price and general administration expenses amount to 7% of selling price. 40 Required: (a) State any three reasons why the net realisable value of inventory may be less than cost (b) Calculate to the nearest Rs.000 the value o inventory at 31 December (l) at cost at net realisable value (it) at the amount to be included in the financial statements in accordance with IAS 2