Bendigo Pottery Ltd is a wholesale distributor of hand-made glazed garden pots to retail stores. All garden pots are identical. Details for January 2020 are shown below.

January	1	Opening inventory	2,000 pots cost $39 each
	8	Sales	1,200 pots selling price $80 each
	9	Purchases	1,600 pots purchase price $44 each
	28	Sales	1,800 pots selling price $84 each
	31	Closing inventory	600 pots from the stock stake

Additional information:

1. Freight costs from the supplier to the Bendigo Pottery Ltd.s warehouse is $4 for each garden pot.
2. One hundred and eighty (180) of the garden pots on hand at 31 January have imperfections in the glazing and can only be sold for $30 each after handling and repackaging of $10 for each pot.
3. The latest selling price of the garden pots is $84 each.
4. Bendigo Pottery Ltd prepares monthly reports and applies the periodic (physical) and the weighted average cost (WAC) method.

Required:

1. Briefly explain why Bendigo Pottery Ltd uses the weighted average cost flow method for its glazed garden pots. [3 marks]

2. Calculate the value of total closing inventory at 31 January 2020 as provided for in AASB 102. Justify all assumptions and calculations. [8 marks]

3. Prepare the general journal entry at 31 January 2020 for any inventory write down. [1 mark]