Lauren is an avocado grower. At 30 June of the current tax year, he had 400 cartons of avocados which had been picked but were not sold until July 2020. Laurens total production of avocados for the current tax year was 16,000 cartons. The costs associated with this production were: Description $ Cartons 9,000 Depreciation of machinery used in picking avocados 21,000 Fuel for machinery used in harvesting process 7,000 Packing shed electricity 2,000 Research into avocado diseases 6,000 Wages for grading and packaging avocados 11,000 Wages for putting ripening bags on bunches of avocados 16,000 Wages to pickers 31,000 Warehouse electricity 3,000 Total 106,000 Required: (a) Calculate the value of closing inventory at 30 June of the current tax year if Lauren elects to value trading inventory at cost price. (5 marks) (b) Provide explanation ONLY for costs that are EXCLUDED during the calculation of the value of closing inventory in part (a). Support your answer with reference to relevant rulings.

QL Part 1 Lauren is an avocado grower. At 30 June of the current tas year, he had 400 cartons of avocados which had been picked but were not sold until July 2020. Lauren's total iroduction of avocados for the current tas year was 16,000 cartons. The costs associated with this production were: $ Description Cartons Depreciation of machinery used in picking avocados Fuel for machinery used in harvesting process Packing shed electricity Research into avocado diseases Wages for grading and packaging avocados Wages for putting ripening bags on bunches of avocados Wages to pickers Warehouse electricity Total 9,000 21.000 7.000 2.000 6,000 11.000 16.000 31.000 3.000 106,000 Required: (a) Calculate the value of closing inventory at 30 June of the current tas year if Lauren elects to value trading inventory at cost price. (5 marks) (6) Provide explanation ONLY for costs that are EXCLUDED during the calculation of the value of closing inventory in part (a) Support your answer with reference to relevant rulings. (2 marks) (Subtotal: 7 marks)