XYZ Ltd uses average cost and a periodic inventory system to account for its inventory, and follows IFRS. You are provided with the following information from XYZ Ltd inventory records for the third quarter of 2021. XYZ Ltd yearend in December 31:

	Units	Cost per unit
Beginning inventory (June 30, 2021)	114,750	$21.00
July Purchases	30,375	$21.25
July Sales	(54,000)
August Purchases	60,750	$21.75
August Sales	(74,250)
September Purchases	40,500	$21.10
September Sales	(47,250)

In addition, you are provided with the following information:

• The selling price per item during June $62;
• An inventory count on September 30 found 68,850 units on hand. In addition, the count found that 325 units were damaged and had to be thrown away;
• During the third quarter XYZ received a cheque for $10,000 from a supplier. The amount was a volume rebate for purchases made during the quarter.
• In late September, 900 units were sold on a consignment basis to a customer. This was the first time goods were sold on consignment by XYZ. The sale was recognized on delivery as is its customary practice.
• When inventory is received at XYZ warehouse it must be unpacked and repackaged for sale to customers. For inventory received in the third quarter of 2021 these handling costs were $12,500
• Inventory is stored in a rented warehouse while its waiting shipment to customers. Monthly rent is $8,000.

Required:

Calculate the amount XYZ should report for inventory on its September 30, 2021 balance sheet and cost of goods sold for the first quarter of fiscal 2022. Prepare any journal/adjusting entries that are necessary.