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The following information relates to inventory held at the year-end:
Item A Item B
£ £
Cost 65 35
Selling price 90 44
Cost of modification required to enable sale 16 n/a
Marketing and distribution costs 20 10
Problem 1: What is the total amount to be included in closing inventory for these 2 items?
A. £88
B. £89
C. £96
D. £97
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