QUESTION 3 35 Marks Part a Bravo Ltd manufactures components for the retail industry. The inventory is currently valued at cost. The cost structure of the component is as follows: Cost/Unit Selling Price /Unit N$ 1 050 Production process 1" stage Conversion costs 2nd stage Finished product NS 1 000 500 1 500 1 700 The selling costs are N$10 per unit and Bravo has 100 000 units at the 1" stage of production and 200 000 units of finished products. Shortly after year end a competitor released a new model and this has resulted in Bravo having to reduce its Selling price to N$1 450 for finished products and N$950 for the 1" stage of production Required: Show the journal entries for inventory write down and 3.1 calculate the value of closing inventory to be included in Bravo's financial statements at reporting date. 10