The business maintains a perpetual inventory record system.

Following a mid-year stocktake, the inventory had a cost of $77 960 while the inventory records were $78 950. Prepare the journal, including narration, and remember 10% GST is added to the variance account.

The end-of-year stocktake totalled $89 066 and the records were $91 476. Prepare the journal, including narration, and remember 10% GST is added to the variance account.

Close out the total of the variance account by journal to cost of sales.