Example 2 Inventory (valuation) Neil paid $3 per unit for the raw materials of its products. To complete each unit incurred $2 per unit in direct labour. Production overheads for the year based on normal output of 12,000 units was $72,000. Due to industrial action only 10,000 units were produced and 1,000 units were in inventory at the end of the year. As a result of the industrial action some units were badly stored and became damaged. Its is estimated that 200 of the units will now only be sold for $12 each after minor repairs of $2 each What figure for closing inventory would be shown in the Statement of Financial Position