McKay Ltd purchased 1000 units of inventory costing $40 per unit at the beginning of the period, and 100 units of inventory later in the period at $90 per unit. The ending inventory for the period contained 50 units. The selling price per unit was $200 and remained constant over the period. McKay Ltd decided to adopt FIFO for inventory valuation purposes and provided the following data for the period ended 30 June: office staff salaries $6000; delivery salaries $4500; depreciation of office equipment $400; depreciation of delivery truck $200; inventories purchased for the period, 10 of the $40 units and 3 of the $90 units; sales of 10 units at a $200 per unit selling price.

Which of the following would be line items in the statement of profit or loss and other comprehensive income for the period if they present their expenses by function?

		Employee benefits costs $10 500
		Depreciation and amortisation expense $600
		Cost of sales $400
		Distribution costs $200

Answer rating: 100% (QA)

Answer Cost of sales 400 workings Total inventory purchase for t... View the full answer