Brian Ltd starts selling footballs in 20X2. Although each ball looks the same, the unit cost of manufacture (which is done in batches) has fluctuated during the period. Details of the costs are as follows:

Details of sales are as follows:

The closing inventory was counted on 30 June and found to be 70 units.
Required
a. Calculate the cost of sales for the year ended 30 June 20X3 and detail the value of the closing inventory using the FIFO, LIFO and weighted average inventory valuation cost flow methods (inventory movement sheets are required).
b. Prepare extracts from the statement of profit and loss for the year ended 30 June 20X3 based on the three valuation methods - explain why a different profit is reported under each method.
c. What inventory valuation method is not permitted under IAS 2?
d. Explain in which circumstances (if any) it would be appropriate to use the following cost flow assumptions:
i. First in first out (LIFO) assumption;
ii. Last in, first out (LIFO) assumption;
iii. Specific identification assumption;
iv. Weighted average cost assumption?

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Date completed Number completed Unit costs 02/07/2 01/08/X2 24/12/X2 15/03/X3 200 300 150 200 850 75 80 90 Date of sale Number sold Unit sale price 05/07X2 10/08/x2 30/12/2 16/03/x3 100 230 100 300 730 100 110 105 20