Montel Bhd is a company involved in the processing of a special fertilisers (Inagrow) for resale to plantation companies. The following transactions occurred during 2020: 1. On 16 January 2020, Montel Bhd purchases 1,000 units of Product X to be used in the processing of Inagrow from a supplier. The terms of the purchase are as follows: i. Invoiced price of RM150 per unit less trade discount of RM5 per unit ii. Non-refundable import duties RM10 per unit iii. Rebates of RM3 per unit if the total volume of purchases is at least 5,000 units per quarter. iv. Transportation cost incurred was RM4,000. v. Handling cost RM500 vi. Administrative cost incurred RM3,000 Montel Bhd is reasonably certain that its purchases for the first quarter of the year will exceed 5,000 units based on its past purchases. 2. In order to meet the current demand of fertilisers from numerous customers, the company purchased a new lorry at RM160,000 to deliver the fertilisers. 3. As at 31 January 2020, the market price of Inagrow is RM120 per unit. The selling costs are RM10 per unit. At this date, there are 200 units of unsold Inagrow. The cost to produce Inagrow is RM100 per unit. Required: a. Briefly explain the classification of the following items in accordance with respective MFRS or the Conceptual Framework. i. Product X ii. A lorry iii. Fertilisers - Inagrow (5 marks) b. Determine the total cost of the inventory purchased on 16 January 2020. (4 marks) c. Discuss the measurement of inventories (Inagrow) as at 31 January 2020