The Following Information Relates to the Total Production Costs and Estimates

Multiple Choice

The following information relates to the total production costs and estimates of realisable value for a line of water pistols produced by Splash Happy Co Ltd. $$\begin{array} { | l | r | r | r | r | } \hline { \text { Item } } & \begin{array} { c } \text { Production cost } \\\$ 000\end{array} & \begin{array} { c } \text { Sales proceeds } \\\$ 000\end{array} & \begin{array} { c } \text { Packaging costs } \\\$ 000\end{array} & \begin{array} { c } \text { Transport costs } \\\$ 000\end{array} \\\hline \text { Big Bang } & 8 & 17 & 5 & 2 \\\hline \text { Little } & 10 & 13 & 1 & 1 \\\hline \text { Splash } & 19 & 25 & 4 & 3\\\hline\end{array}$$ Packaging and transport costs are necessarily incurred in order to be able to sell the inventory.What is the value of the inventory in accordance with IAS 2?

A) $37 000
B) $21 000
C) $39 000
D) $36 000