With reference to the information given in Para 8, compute the cost of the inventory? Substantiate your answer with appropriate reasons and…

Statement showing computation of inventory cost Particulars Amount (₹) Remarks Costs of purchase 6,00,000 Purchase price of raw material [purchase price (6,50,000) less refundable purchase taxes (50,000)] Loan-raising fee - Included in the measurement of the liability Costs of purchase 55,000 Purchase price of consumable stores Costs of conversion 65,000 Direct costs—labour Production overheads 15,000 Fixed costs-depreciation Production overheads 10,000 Product design costs and labour cost for specific customer Other costs 37,000 Refer working note Borrowing costs - Recognized as an expense in profit or loss Total cost of inventories 7,82,000 Working Note: Costs of testing product designed for specific customer: = 21,000 material (i.e. net of the - 3,000 recovered from the sale of the scrapped output) +11,000 labour +5,000 depreciation. = 37,000