Question

Mansfield Ltd is a wholesale distribution business that sells bottled juice to supermarkets. The following information relates to business activities during June 2020.

1 June             Opening Inventory               1,800 bottles @ $2.08

5 June             Sales                                     800 bottles @ $3.20

9 June             Purchases                             1,200 bottles @ $2.04

13 June          Purchases                             1,100 bottles @ $2.01

18 June           Sales                                     1,700 bottles @ $3.10

22 June           Purchases                             1,000 bottles @ $2.02

23 June           Sales                                     2,200 bottles @ $3.25

29 June           Purchases                             1,600 bottles @ $2.07

Additional information:

1) 320 bottles of closing inventory have been damaged and can only be sold for $0.55 per bottle.

2) Transportation from Mansfield Ltd to customers costs $0.20 per bottle. Mansfield Ltd pays all transportation costs.

3) The company uses the periodic inventory method.

Required:

In accordance with AASB 102 Inventories, determine the value of cost of goods sold and closing inventory, applying the Weighted Average Cost Method. Show all workings

*Please upload the solution as soon as you can finish it. Thanks for your help

Answer 1