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Question 3
Good Life Cola Co. buys cola for resale. The company uses a periodic inventory system.
Stock purchases of cola for the month of September were as follows:
| Date | Description | Quantity (litres) | Cost per Litre ($) |
| Sept 1 | Opening stock | 200,000 | $1.10 |
| Sept 13 | Purchase | 150,000 | $1.40 |
| Sept 21 | Purchase | 100,000 | $1.50 |
| Sept 29 | Purchase | 150,000 | $1.60 |
| Sept 30 | Closing stock | 160,000 |
Sales revenue for the month of September was $2,150,000.
Required:
- Calculate the closing inventory balance using the weighted average cost method. (Show your workings.)
- Complete the following Trading Statement for the month:
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