Kaitano$$s inventory includes three items for which the following details are available.

Supplier's Net realisable

list price value

$ $

Product X $43206120$

Product Y $34803360$

Product Z $50404920$

The company receives a $2\mathrm{.}5\%$ trade discount from its suppliers and it also takes advantage of a $2\%$ discount for prompt payment.

Required

i$.$ Calculate the total value of products X$,$ Y and Z which should be shown in inventory in the statement of financial position.

ii$.$ Explain the difference that changing from a weighted average to FIFO method of inventory valuation is likely to have on an entity's profit or loss. $(10$ marks$)$

$($b$)$ IAS $41$ Agriculture prescribes the accounting treatment and disclosures related to agricultural activities. An entity is encouraged, but not required, to provide a quantified description of each group of biological assets, distinguishing between consumables and bearer biological assets, or between mature and immature biological assets, as appropriate.

Required

i$.$ Distinguish between a biological asset and an item of agricultural produce.

ii$.$ Explain how agricultural produce is measured in the financial statements of an entity.

iii. Give five examples of biological assets and their relative agricultural produce.

iv$.$ Explain what is meant by consumable and bearer biological assets, giving one example for each. $(10$ marks$)$

$($c$)$ On $1$ January $2023$ Shumba Enterprises entered into a lease agreement to rent an asset for a six$-$year period, at which point it will be returned to the lessor and scrapped, with annual payments of $$22104$ made in advance. The initial measurement of the lease liability amounts to $$100800,$ discounted at the implicit interest rate shown in the lease agreement of $12\mathrm{.}5\%.$

Shumba Enterprises expects to sell goods produced by the asset during the first five years of the lease term but has leased the asset for six years as this is the requirement of the lessor, and in case this expectation changes. Shumba Enterprises has the right to determine the use of the asset during the lease term and will obtain substantially all the economic benefit from its use.

Required

Explain how the above lease would be accounted for the year ending $31$ December $2023$ including producing relevant extracts from the statement of profit or loss and statement of financial position.