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Shitake plc has some unfinished units of inventory at the end of the year. Costs incurred so far include direct production cost of 46 per
Shitake plc has some unfinished units of inventory at the end of the year. Costs incurred so far include direct production cost of 46 per unit and production overheads of 15 per unit. To complete the units, further production cost of 17 per unit will need to be incurred. The selling price of each complete unit is 80 and selling costs are estimated at 10% of selling price. At what amount should each unit of unfinished inventory be included in the Statement of financial position?
a. 71
b. 55
c. 40
d. 78
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