Therefore ending inventory 6100 2 ii cost of goods

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2.(ii) Cost of goods sold for the year ended 30 June 2014 and ending inventory as at 30 June 2014 for the rural scene print, using the
Additional Problem 34 Abbott Ltd sells its own brand of specialty swords – Japanese and American. Details about its inventory for the year ended 30 June 2018 are as follows:
A government tax of $20 per Japanese sword must be paid by Abbott Ltd. Sales of swords during the year have been above expectation. However, due to changes in technology, Abbott Ltd ishaving difficulty selling its swords. Management has decided to decrease the selling price to improve sales of swords. Selling price information for the coming period on these products are: Japanese Swords $400 each Australian Swords $200 each Details of ending inventory at 30 June 2018: Japanese Swords 2,400 in stock Australian Swords 2,000 in stock Abbott Ltd uses a periodic inventory system and sells on a first-in-first-out (FIFO) basis. Required: Calculate the value of ending inventory in the Balance Sheet of Abbott Ltd as at 30 June 2018 in accordance with AASB 102 Inventories and the rule of “lower of Cost and Net Realisable Value”. Justify your answer and show all workings.

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