Costs incurred by Butler Ltd during the financial year included: raw materials $10,000; direct labour conversion costs $20,000; storage costs $3,000; recoverable goods and services tax $1,000; selling costs $5,000. The estimated fair value of the inventory is $39,000 and the estimated net residual value is $34,000. The beginning inventory was $0. The cost to be included in inventory at the end of the financial period is:

1. $39,000.
2. $38,000.
3. $34,000.
4. $30,000.