Soakwell Supplies Ltd manufactures and sells soakwells for use in suburban and light industrial areas of Perth. Over the past year, the cost of manufacturing the soakwells has gradually risen and the company has been required to increase inventory levels to meet expected demand in the new year, which has been forecast to bring better‐than‐average rainfall. At 1 July 2019, the company had 40 soakwells on hand, which had cost $200 each to make. The selling price of each soakwell remained at $400 in 2019 but was raised to $470 in 2020. Ignore GST.

During the year ended 30 June 2020, details of soakwells completed and sold are as follows.

Required

(a) Prepare the perpetual inventory record for soakwells for the year on the basis of FIFO.

(b) How much gross profit has been generated for the year from the sale of soakwells?

(c) What is the gross profit ratio achieved by the company in the year ended 30 June 2020?

(d) What value is placed on the inventory of soakwells at 30 June 2020?

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Soakwells manufactured: 2019 Aug. 31 45 at $220 each Oct. 31 55 at $240 each 2020 Jan. 31 65 at $270 each May 31 Soakwells sold: 2019 Sept. 30 Nov. 30 2020 Feb. 28 June 30 85 at $300 each 50 559 65 ef 775 70