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

1 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 Opening inventory 2,000 pots - cost $39 each 8 Sales 1,200 pots - selling price $80 each 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: 9 i. Freight costs from the supplier to the Bendigo Pottery Ltd.'s warehouse is $4 for each garden pot. ii. 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./ The latest selling price of the garden pots is $84 each. Bendigo Pottery Ltd prepares monthly reports and applies the periodic (physical) and the weighted average cost (WAC) method. iii. iv