Q1

The following data relates Pacific Ltd who are specialized in the production of Pic softwares and Pas softwares. At 31 December 2011 the company has the following products in inventory at the end of 2011:

Pic softwares(completed) Pas softwares(part complete)

Units

5,750 and 3,450 (respectively)

Costs per unit ($)

24 and 29 (respectively)

Pacific Ltd policy is such that each product normally sells at $45 per unit. Due to difficult trading conditions, the company intends to offer a discount of 26% per unit and expects to incur $4.6 per unit in selling costs. A further $12 per unit is expected to be incurred to complete each unit of Pas softwares .

Requirement:

In accordance with IAS 2 (Inventories), at what amount should inventory be stated in the financial statements of Pacific Ltd as at 31 December 2011?