Reference no: EM132587392

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:

Question 1: 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.