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| For Morgan the direct cost of production of each unit of inventory is $46 (including carriage inwards of $11 and import duties of $1 on the raw materials element). Production overheads amount to $15 per unit. Currently the goods can only be sold if they are modified at a cost of $17 per unit. The selling price of each modified unit is $80 and selling costs are estimated at 10% of selling price. At what value should each unmodified unit of inventory be included in the statement of financial position? A $46 B $55 C $61 D $63 |