Question
Mansfield Ltd is a wholesale distribution business that sells bottled juice to supermarkets. The following information relates to business activities during June 2020. 1 June
Mansfield Ltd is a wholesale distribution business that sells bottled juice to supermarkets. The following information relates to business activities during June 2020.
1 June Opening Inventory 1,800 bottles @ $2.08
5 June Sales 800 bottles @ $3.20
9 June Purchases 1,200 bottles @ $2.04
13 June Purchases 1,100 bottles @ $2.01
18 June Sales 1,700 bottles @ $3.10
22 June Purchases 1,000 bottles @ $2.02
23 June Sales 2,200 bottles @ $3.25
29 June Purchases 1,600 bottles @ $2.07
Additional information:
1) 320 bottles of closing inventory have been damaged and can only be sold for $0.55 per bottle.
2) Transportation from Mansfield Ltd to customers costs $0.20 per bottle. Mansfield Ltd pays all transportation costs.
3) The company uses the periodic inventory method.
Required:
In accordance with AASB 102 Inventories, determine the value of cost of goods sold and closing inventory, applying the Weighted Average Cost Method. Show all workings
*Please upload the solution as soon as you can finish it. Thanks for your help
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