108 , 000 kg of raw materials are held in inventory at the year end. a) Calculate the cost of the raw material inventory at 31 July 2022 based on a first in first out (FIFO) approach 2 marks Metal prices drop suddenly towards the year end, and the cost of 1 kg of metal at 31 July 2022 is now only 28 p . b) State the amount of the write-down, if any, required to the above valuation of the raw material inventory. 2 marks Production costs The entity achieved its budgeted level of production for the year, being 580,000 finished units and a further 50,000 units that are 40% complete. The production costs for the period were: Page 5 of 7 c) Calculate the cost of producing 1 unit of finished good. Provide your answer to the nearest pence. 2 marks Total 6 marks 108 , 000 kg of raw materials are held in inventory at the year end. a) Calculate the cost of the raw material inventory at 31 July 2022 based on a first in first out (FIFO) approach 2 marks Metal prices drop suddenly towards the year end, and the cost of 1 kg of metal at 31 July 2022 is now only 28 p . b) State the amount of the write-down, if any, required to the above valuation of the raw material inventory. 2 marks Production costs The entity achieved its budgeted level of production for the year, being 580,000 finished units and a further 50,000 units that are 40% complete. The production costs for the period were: Page 5 of 7 c) Calculate the cost of producing 1 unit of finished good. Provide your answer to the nearest pence. 2 marks Total 6 marks