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An item of inventory was purchased by company X for 500. Company X expects to sell the inventory for 700 and has to date incurred

An item of inventory was purchased by company X for 500. Company X expects to sell the inventory for 700 and has to date incurred conversion costs of 130. A further 60 is expected to be incurred. Sales staff will receive a commission of 4% from the sale.

Compute the value at which this inventory item will be measured in company Xs statement of financial position.

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