The information below relates to barrels of oil held in the inventory of Olsen’s Ltd during 2015.

		Barrels			Unit cost
1 January 15 April 13 May 9 August 28 October	Beginning inventory Purchases Sales ($52 per barrel) Purchases Sales ($52 per barrel)	30000  40000  (50000) 35000  (40000)					$44 44 44

Owing to an oil glut, the net realisable value for a barrel of the same grade of oil was $40 per barrel on 31 December 2015. In 2016, the company disposed of the 15000 barrels of oil in the ending inventory for $600000. No additional purchases were made in 2016. Olsen’s Ltd uses a periodic inventory system and the average cost flow method. Ignore GST.

Required

Complete the following partial income statements for 2015 and 2016 under the average cost flow method and the lower of cost and net realisable value rule.