Financial reporting

Regina is a shoe production factory. In January, they made purchases of 80,000kgs of raw materials at the cost of M15 per kg. The company pays its labour at M7 per hour worked on a pair of shoes. It takes 4 hours and 2kgs to manufacture a pair of shoes. Other direct production costs incurred for the year ended 31ST December 2020 were M12 a pair. At the end of the year there were 25 finished pairs left in store after each pair was sold on the mark up of 20%. Of those pairs in store, 11 seemed to have a problem and will therefore be sold after a bit of a repair at 5% less price than a normal price. The repairs before sale will be M25 per pair.

Required: Calculate the correct amount to value the finished inventory for the year ending 31st December 2020. (10 marks)