CID Retail has the following purchases and sales of a particular product line. Particulars 02 December 16 December 30 December 14 January 28 January 11 February Units Purchased Purchased price per Units sold Selling price per unit unit Rs.000 Rs.000 100 500 60 530 60 503 80 528 70 506 50 526 50 509 70 524 80 512 50 522 40 515 40 520 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. Required: (a) State any three reasons why the net realizable value of inventory may be less than cost. (b) Calculate to the nearest Rs. '000 the value of inventory at 31 December (i) at cost (ii) at net realizable value (iii) at the amount to be included in the financial statements in accordance with IAS 2.