$(10$ marks, $10$ minutes$)$ Lona Ltd$.$ provided the following inventory information from its accounting records for the year ended December $31,2021.$

Additional information

$$ All the inventory held by Lona Ltd$.$ have similar purposes and end uses, produced and marketed in GTA Toronto, and cannot be separately evaluated from other items in its product line.

$$ $$50,000$ general and administrative expenses were incurred during $2021.$ No adjustment was made to the Inventory account for these expenses.

$$ Lona Ltd$.$ expects to receive $$5,000$ volume rebates from a vendor in $2022$ for the inventory purchased on December $1,2021,$ all of which is still in the inventory on December $31,2021.$ No adjustment for the rebates was made to the Inventory account.

$$ Total purchase of inventory during $2021$ was $$75,000$

$$ On December $31,2020,$ balances in Inventory and Allowance to Reduce Inventory to NRV were $$250,000$ DR and $$5,000$ CR$,$ respectively.

$$ Lona Ltd$.$ uses the allowance method under a periodic inventory system. The Inventory account has not been adjusted since December $31,2020.$ Lona Inc. follows ASPE.

Required

a$.$ Calculate the inventory and cost of goods sold for the year ended December $31,2021.$ Show all your calculations. $(5$ marks$)$

b$.$ Prepare the journal entries that are required for the year ended December $31,2021.(5$ marks$)$