Shelley Ltd starts selling bowling balls in 2021. Although each ball looks the same, the unit cost of manufacture (which is done in batches) has fluctuated during the period. Shelley Ltd adopts a FIFO cost-flow assumption and employs a perpetual inventory system. Details of costs are as follows:

REQUIRED

What is the cost of sales for the year ended 30 June 2022 and what is the value of inventory as at 30 June 2022?

Transcribed Image Text:

Date completed Number completed Unit costs ($) 2 July 2021 75 1 Aug. 2021 80 24 Dec. 2021 88 15 Mar. 2022 90 15 June 2022 88 200 300 150 200 200 1050 Page 279Details of sales are as follows: Date of sale 5 July 2021 100 10 Aug. 2021 230 30 Dec. 2021 100 16 Mar. 2022 300 Number sold Unit price ($) 100 110 105 120