Alpha Ltd makes one standard article. You have been given the following information:
1. The inventor y sheets at the year-end show the following items:
Raw materials:
100 tons of steel:
Cost £140 per ton
Present price £130 per ton

Finished goods:
100 finished units:
Cost of materials £50 per unit
Labour cost £150 per unit
Selling price £500 per unit

40 semi-finished units
Cost of materials £50 per unit
Labour cost to date £100 per unit
Selling price £500 per unit (completed)

10 damaged finished units:
Cost to rectify the damage £200 per unit
Selling price £500 per unit (when rectified)
2. Manufacturing overheads are 100% of labour cost.
Selling and distribution expenses are £60 per unit (mainly salespeople’s commission and freight charges).

Required:
From the information in notes 1 and 2, state the amounts to be included in the statement of financial position of Alpha Ltd in respect of inventory. State also the principles you have applied.