The information below relates to barrels of oil held in the inventory of Petroleum Ltd during 2024.

Owing to an oil glut, the net realisable value for a barrel of the same grade of oil was \($60\) per barrel on 31 December 2024. In 2025, the company disposed of the 22 500 barrels of oil in the ending inventory for \($900\) 000. No additional purchases were made in 2025. Petroleum Ltd uses a periodic inventory system and the average cost flow method. Ignore GST.
Required

Complete the following partial Statement of Profit or Loss for 2024 and 2024 under the average cost flow method and the lower of cost and net realisable value rule. Use the template below:

Transcribed Image Text:

Date Transactions Barrels Unit Cost Jan. 1 Beginning inventory 45,000 Apr. 15 Purchases 60,000 $ 66 66 May 13 Sales ($78 per barrel) (75,000) Aug. 19 Purchases 52,500 66 Oct. 28 Sales ($78 per barrel) (60,000)