C Inc. sells special chemicals. It uses the perpetual inventory method. The following data is available on one of its products:

Stock of chemicals on 01.01.20: 550 kg at 50 /kg

Purchases:

March May November

150 kg at 45 /kg 150 kg at 50 /kg 300 kg at 55 /kg

Sales:

April

July December

300 kg at 55 /kg 300 kg at 60 /kg 350 kg at 65 /kg

a) Briefly outline the different types of costs that are required to be included in the cost of inventory in accordance to IFRS. Which cost are not eligible for recognition according to IFRS and why?

b) Briefly outline the treatment of fixed production overheads incurred in the production of inventory in accordance to IFRS.

c) Determine the value of inventory on hand per 31.12.2020 and the cost of goods sold as well as the gross profit using the FIFO-method. Show your calculations!