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Rihanna Ltd is a new business that sells perfume bottles. The business had started operations...

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Accounting

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Rihanna Ltd is a new business that sells perfume bottles. The business had started operations with 100 bottles purchased for $40 each. During the first month of operation the following purchases were made Purchased 300 bottles (invoice price - $38.00). The freight and insurance cost on the entire order was $1,800. 1 July 2016 18 July 2016 Purchased 200 bottles from a different supplier whose normal retail price was $40.00 per unit. However, the supplier granted Rihanna Ltd a trade discount of 10% and offered free freight and insurance. Sales of bottles for the month were as follows: 6 July 2016 20 July 2016 23 July 2016 Units solod 150 100 100 350 Selling price per unit $124 $124 $128 20 bottles from the purchase on the 18 July 2016 were found to have been left in the sun and have become discoloured. These bottles can only be sold for $20 each. A physical stocktake revealed 250 units on hand at the end of the period. Rihanna Ltd uses the periodic inventory method and the first in first out (FIFO) cost-flow method. Required: Calculate the cost of closing inventory, in accordance with the requirements of relevant Australian accounting standards. Justify ALL elements of your calculations in accordance with Australian accounting standards

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