Pina Colada Hotels Ltd. (PCHL) is a small boutique hotel that provides 42 suites that can be rented by the day, week, or month. Food service is available through room service as well. In addition, there are two suites that have been rented on a long-term basis to corporate tenants, who have access to their suites anytime throughout the year without making a reservation. The company has a December 31 year end, and you are preparing the year-end financial statements using IFRS. The following issues require your consideration:

Inventory

PHL follows a policy of FIFO costing, and values items at the lower of cost and net realizable value based on an individual item basis.

The hotel has a standing weekly order at set prices with a local catering firm. If the food is not eaten before the next delivery is received, it is donated to the local womens shelter. This ensures that all meals are of appropriate quality for the hotel guests.

On December 31, the following items were delivered:

Item		Unit Cost		Net Realizable Value
39 chicken dinners		$7		$14
35 beef dinners		$6		$15
76 frozen vegetable servings		$1		$2
76 units of fresh fruit		$1		$2
92 desserts		$3		$5

The invoice for the food delivery on December 31 included an additional delivery charge of $0.10 per item, totalling $31.80.

On December 31, an ice storm resulted in a loss of electricity to the hotel building. As a result, 18 chicken and 11 beef dinners thawed and were unusable.

The hotel also maintains an inventory of white terry cloth bathrobes and towels that are available for sale to its clients. At December 31, the following information is available:

Product		Quantity		Cost/Unit		Selling Price/Unit
Bathrobes, assorted sizes		41		$50.50		$88.00
Towels, extra-large		28		$18.30		$17.00*
Towels, large		29		$17.00		$29.00

*The extra-large towels are no longer popular and management has decided to discontinue them. It offers the hotel staff a 20% commission for all extra-large towels they sell at the sale price of $17.00.

- Inventory carrying values

Calculate the carrying value of each inventory item as at December 31. Identify any inventory that requires a writedown. Enter the carrying value in the appropriate space in the table below. Place an X in the space for any inventory that requires a writedown.

	Carrying Value ($)	Writedown Required
Food:
Chicken dinners
Beef dinners
Vegetable servings
Fruit servings
Desserts
Bathrobes and towels:
Bathrobes
Towels, extra-large
Towels, large