Esinam Ltd has the following products in inventory at the end of 2016:
Units Cost per unit GH¢
Ahomka (completed) 5,400 22
Adonko (part complete) 2,800 26
Each product normally sells at GH¢34 per unit. Due to the difficult trading conditions, Esinam Ltd intends to offer a discount of 15% per unit and expects to incur GH¢4 per unit in selling costs. GH¢10 per unit is expected to be incurred to complete each unit of Adonko.
Required:
In accordance with IAS 2 Inventories, at what amount should inventory be stated in the financial statements of Esinam Ltd as at 31 December 2016? (3 marks)
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