Alpha Ltd makes one standard article. You have been given the following information: i) The inventory sheet at the year-end showed the following items Raw material: 100 tons of steel, Cost per ton is P 140 and the present price per ton is P 130 Finished goods 100 finished units: cost of materials is 50 per unit, cost of labour is P 150 per unit and selling price is P 500 per unit completed. Finished goods 100 finished units: cost of materials is 50 per unit, cost of labour is 150 per unit and selling price is P 500 per unit completed. 10 damaged finished units: cost to rectify the damage P 200 per unit and selling price is P 500 per unit when rectified ii) Manufacturing overheads are 100% labour costs; selling and distribution expenses are P 60 per unit

. Required i. State the fundamental principle of IAS 2 in valuing inventory (5 Marks)

ii. From the information in notes i and ii, state the amount to be included in the statement of financial position of Alpha in respect of inventory.