Revision question on financial accounting – IAS 2 (Esinam ltd)

Esinam Ltd has the following products in inventory at the end of 2016:

  Units Cost per unit Tsh
Ahomka (completed) 5,400 22
Adonko (part complete) 2,800 26

Each product normally sells at Tsh 34 per unit. Due to the difficult trading conditions, Esinam Ltd intends to offer a discount of 15% per unit and expects to incur Tsh 4 per unit in selling costs. Tsh 10 per unit is expected to be incurred to complete each unit of Adonko.


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?                                    

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