Fitness Centre sells a boxed workout jersey in one size only and an energy drink. For the work out jersey, Fitness Centre uses the weighted average cost flow method. For the energy drink, Fitness Centre uses the FIFO cost flow method. This reflects the difference in the nature of the inventory and approximates the cost over time.

For January 2021 the following information was available for Fitness Centre work out jerseys

On 1 January 2021, the centre had 500 work out jerseys in stock at total cost of $20 each.

January 14	400 work out jerseys, unit purchase price $22
January 28	600 work out jerseys, unit purchase price $24.50
January 31	700 work out jerseys were on hand

The cost of the box for each work out jerseys is $1 The latest selling price is $30 for each boxed jersey

During the stocktake, 60 of the jerseys, purchased on January 14, were found to be shop soiled. The selling price of these jerseys was reduced to $15. Handling costs to clean and repackage the jerseys was $2 per jersey. Energy drink

January
8	Purchased 100 bottles, purchase price $2
23	Purchased 200 bottles, purchase price $2.20
31	Inventory on hand, 260 bottles

Freight in on purchases is $1 per bottle The latest selling price for energy drink is $5 per bottle.

40 bottles of energy drink on hand were near their use by date and were reduced to a selling price of $1.50. Handling costs to relabel the energy drink was $1 per bottle.

Required:

Calculate the value of total closing inventory at 31 January as provided for in AASB 102 Inventories. Justify all assumptions and calculations.