Reference no: EM132570075

Question - The Shop has been operating using the gross purchases method under a perpetual inventory system. All of the Shop's suppliers are GST registered (15%), as well, and all purchases and sales take place on credit. Management has decided to use the James brand of basketball for this exercise. On 1 July, there was a balance of $2,300 in Accounts Payable relating to a James basketball purchase completed in June. Had the net purchases method been used, the balance would have been $2,254.

The inventory on 1 July consisted of 20 basketballs for $484, purchased on 15 June, and 98 basketballs purchased for $1960 purchased on 28 June. These figures are net of GST and the 2% discount as both purchases were in the discount period. If 80 basketballs were sold on 7 July, what are the cost of goods sold on that day under the perpetual moving weighted average method? Round to 2 decimal places and the nearest dollar.