Chestnut plc is a manufacturer and has incurred the following costs in relation to a finished unit of inventory: Raw materials 1.70 Recoverable import duties 0.35 Delivery of raw materials to the factory 0.30 Manufacturing labour 1.30 Production overheads (per unit) 0.25 Storage costs of completed unit 0.05 Delivery costs to customer 0.30 At what cost should Chestnut plc value the inventory in the Statement of financial position?

a. None of the answers are correct

b. 3.90/ unit

c. 3.85/ unit

d. 3.55/ unit