Reference no: EM132859200

Astro Enterprises, a company that prepares its financial statements in accordance with IFRS, manufactures tables. In 2019, the factory produced 900,000 finished tables and scrapped 1,000 tables. For the finished tables, raw material costs were $10 million, direct labour conversion costs were $18 million, and production overhead costs were $1.8 million.

• The 1,000 scrapped tables (attributable to abnormal waste) had a total production cost of $32,000 ($12,000 raw material costs and $20,000 conversion costs; these costs are not included in the $10 million raw material and $19.8 million total conversion costs of the finished tables).
• During the year, Astro spent $2 million for freight delivery charges on raw materials and $600,000 for storing finished goods inventory. Astro does not have any work-in-progress inventory at the end of the year.

Problem 1: Calculate the costs that should be included in inventory in 2019.