The following information relates to Two Mo Ult plc, a manufacturing company, which commenced trading during the year ended 30 November 2020. The company manufactures WD Gets.

Per Unit

Direct Materials 20.00

Direct Labour 40.00

Per Annum m

Production Overheads 900

Administrative Overheads 200

Selling Overheads 250

Interest Payments 50

Units

Units of finished product

in inventory at the year end 1million

The directors of Two Mo Ult plc have ascertained that the normal level of production is 100 million WD Gets. However, in the year ended 30 November 2020 only 90 million units were produced due to start-up difficulties.

Required:

(a) Calculate the cost of the WD Gets in inventory at the year-end

(b) Explain the treatment of production overheads for the year

(c) How much overhead was allocated/unallocated?