11.  INVENTORIES December 31 2010 2011 NT$ NT$ (In Millions) Merchandise $  2,147 $  2,999 Work in process 765 782 Raw materials ─ 25 2,912 3,806 Land held for sale ─ 579 Land held under development  1,237 111 Construction in progress 376 682 Land held for development 36 36 $  4,561 $  5,214 The operating costs related to inventories were NT$23,116 million (including the valuation loss on inventories of NT$56  million), NT$27,046 million (including valuation loss on inventories of NT$17 million) and NT$32,826 million (including the  valuation loss on inventories of NT$187 million) for the years ended December 31, 2009, 2010 and 2011, respectively. Land held for sale on December 31, 2011 was for Wan-Xi and Covent projects. Land held under development and construction in progress on December 31, 2010 was for Guang-Diang, Wan-Xi, Covent, Li- Shui (A), and Li-Shui (B) projects. Land held under development and construction in progress on December 31, 2011 was for Guang-Diang and Li-Shui (A)  projects. Guang-Diang and Li-Shui (A) projects are expected to be completed in 2012. LED recognizes the relevant revenues of Guang-Diang Project by percentage of completion method. The related information  were as follows (in millions): PART III December 31 2010 2011 NT$ NT$ (In Millions) Percentage of completion method Guang-Diang project Contract price $  983 $  983 Estimated construction cost 425 430 Land held under development $  65 $  65 Construction in progress Construction cost $  174 $  290 Recognized cumulative gain 199 392 $  373 $  682 Deferred marketing expenses (classified as other current assets) $  38 $  17 Advance from land and building (classified as other current liabilities) 155 179 Percentage of completion 43% 79% Expected year of completion 2012 2012 F-27