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Neshila Ltd has only 2 items of inventory at its reporting date.
Item 1:
Materials costing N$24000 was bought for processing and assembly for a customer under a "once off" order which is expected to produce a high profit margin. Since buying this material, the cost price has fallen to N$ 20000.
Item 2:
A machine constructed for another customer for a contracted price of N$36000. This has recently been completed at a cost of N$33 600. It has now been discovered that in order to meet certain health and safety regulations, modifications at an extra cost of $8 400 will be required. The customer has agreed to meet half of the extra cost.
Question 1. What should be the total value of these two items of inventory in the statement of financial position?
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