Soyyy bean is a wholesale business that sells soy milk to supermarkets. The following information...
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Accounting
Soyyy bean is a wholesale business that sells soy milk to supermarkets. The following information relates to business activities during June 2020.
1 June Opening Inventory 1,200 bottles @ $1.08 5 June Sales 200 bottles @ $1.20 9 June Purchases 1,200 bottles @ $2.04 13 June Purchases 1,100 bottles @ $2.01 18 June Sales 700 bottles @ $1.10 22 June Purchases 1,000 bottles @ $2.02 23 June Sales 2,100 bottles @ $3.25 29 June Purchases 1,300 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 Soyyy bean Ltd to customers costs $0.20 per bottle. Soyyy bean 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.
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