John Ltd starts selling mobile phones in 20X2. Details of purchases in the year are as follows:

Date Completed .............. Number purchased ............ Unit cost of mobile phone

............................................................................................................ £

01/06/X2 ............................. 100 ................................. 150

05/08/X2 ............................. 150 ................................. 160

21/10/X2 .............................. 75 .................................. 176

25/12/X2 ............................. 425

Details of sales in the year are as follows:

Date of sale ........................... Number sold ................. Unit sale price

......................................................................................£

05/06/X2 ..................................... 50 ................................. 200

10/08/X2 ..................................... 115 ............................... 220

23/12/X2 ..................................... 50 ................................. 210

30/12/X2 ..................................... 150 ............................... 240

.................................................. 365

Required

Calculate the cost of sales for the year ended 31 December 20X2 and detail the value of the closing inventory using the FIFO and weighted average inventory valuation cost flow methods (inventory movement sheets are required).

Prepare the statement of profit and loss for the year ended 31 December 20X2 based on both valuation methods?