MKH BERHAD | ANNUAL REPORT 2023 221 22. INVENTORIES The Group 2023 2022 RM RM At lower of cost and net realisable value: Raw materials 128,443 207,926 Work-in-progress 81,831 46,966 Finished goods 1,043,354 1,193,265 Food and beverages 3,638 30,346 Plantation consumables 17,706,581 16,844,665 Fertilizers 6,885,857 20,804,242 Crude palm oil and palm kernel 16,225,231 30,065,500 Completed development properties 69,095,661 82,089,011 111,170,596 151,281,921 During the financial year, the cost of inventories recognized as an expense in cost of sales of the Group is RM366,688,409 (2022: RM302,157,635). In the previous financial year, the Group transferred completed inventories amounted to RM17,749,731 to investment properties as disclosed in Note 14 due to the change in management intention. 23. CONTRACT ASSETS AND CONTRACT LIABILITIES The Group 2023 2022 RM RM Contract assets 323,629,930 305,448,829 Contract liabilities (5,497,971) (6,071,202) Net 318,131,959 299,377,627 At beginning of year 299,377,627 270,120,261 Consideration paid/payable to customers 91,579,036 143,337,720 Revenue recognized during the year 586,910,905 538,116,223 Progress billing during the year (659,735,609) (652,196,577) At end of year 318,131,959 299,377,627 Revenue from property development activities is recognized over time using the input method, which is based on the actual cost incurred to date on the property development project as compared to the total budgeted cost for the respective development projects. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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