Assuming the net realisable value is greater than the cost at the end of the year, it is B.
Shipping costs should be added to the cost of stock, which then either gets written off through the profit and loss account, or carried forward on the balance sheet to the next year.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM33135.htm
"In general, the term ‘cost' should be interpreted as meaning the total historical cost of bringing the relevant stock to its existing condition and location"