Balmoral Ltd Commenced Business on 1 July 2013 Packaging and Delivery Are Essential to Be Able to Sell

Multiple Choice

Balmoral Ltd commenced business on 1 July 2013.The company manufactures bookcases.Summary data for Balmoral's first full year of operations are: $\begin{array}{|l|l|}\hline \text { Closing finished goods in units } & 900 \\\hline \text { Closing value of raw materials inventory } & \$ 50000 \\\hline \text { Purchases of raw materials } & \$ 450000 \\\hline \text { Salaries: } &\\\hline \text { Factory } & \$ 150000 \\\hline \text { Marketing } & \$ 90000 \\\hline \text { Administration } & \$ 70000\\\hline \text { Factory depreciation } & \$ 60000 \\\hline \text { Factory equipment depreciation } & \$ 45000 \\\hline \text { Advertising } & \$ 80000 \\\hline \text { Interest } & \$ 39000 \\\hline\text { Sales price per unit } & \$ 79 \text { per unit } \\\hline \text { Packaging and delivery costs of finished goods } & \$ 9 \text { per unit } \\\hline \text { Normal operating capacity (units) } & 10000 \\\hline \text { Production this period (units) } & 10000\\\hline\end{array}$ Packaging and delivery are essential to be able to sell the product.What total value should be attributed to finished goods inventory in the financial statements in accordance with IAS 2?

A) $58 950
B) $63 000
C) $49 500
D) $69 660