Furniture Mart manufactures and retails household and office furniture and accounts for sales at the point the furniture is ready for delivery. It prepares accounts annually up to 30 June. On the basis of an inventory conducted on 5 July 2011, Furniture Mart ascertained that the cost of its unsold goods in hand on that date was £865,200. You are provided with the following information:

(i) On the inventory sheets 1,200 sets of furniture rollers have been valued at £20 per set whereas they cost £20 per dozen.

(ii) Sales during the first five days of July amounted to £144,000, though a third of these were not delivered to the customer until 6 July. Sales are effected at cost plus a third.

(iii) Purchases during the five days to 5 July amounted to £200,000, but only 25% of this was delivered by the time of the inventory.

(iv) Wood, for which £75,000 was paid on 18 June 2011 and accounted for as purchases in the year, was not received at Furniture Mart until 6 July.

(v) Included in the inventory sheet at its cost of £15,000 are brass cabinet hinges, the market value of which has since gone down by 20%. These hinges were intended for making cabinets – a line which has been discontinued.

(vi) Four hundred office shelves, included in the inventory sheets at cost of £300 each, are no longer in fashion and cannot be retailed at more than £225 a shelf.

(vii) A dining room suite, made to a customer’s order at an agreed price of £6,000, has been included in the inventory sheets at its cost of £4,800. To abide by the recent change in legislation, the suite cannot be delivered to the customer until it is re-upholstered in non-inflammable material and that is expected to cost £1,500.

Required: 

Determine the inventory to be reported on the Statement of financial position as at 30 June 2011.