Circle Ltd Manufactures Polystyrene Trays for a Variety of Purposes

Multiple Choice

Circle Ltd manufactures polystyrene trays for a variety of purposes.The following information relates to the production of the medium trays used by meat packing companies for the period ended 30 June 2012. $$\begin{array} { | l | l | r | r | } \hline \text { Date } & \text { Manufactured } & \text { Cost \$ } & \text { Units sold } \\\hline 1 \text { July (balance) } & 1000 @ \$ 0.15 & 150 & \\\hline 15 \text { July 2011 } & 900 @ \$ 0.10 & 90 & \\\hline 19 \text { July 2011 } & & & 1050 \\\hline 20 \text { August 2011 } & 200 @ \$ 0.20 & 40 & \\\hline 21 \text { August 2011 } & & & 890 \\\hline 15 \text { October 2011 } & 750 @ \$ 0.12 & 90 & \\\hline 30 \text { October 2011 } & & & 500 \\\hline 15 \text { December 2011 } & 650 @ \$ 0.16 & 104 & \\\hline 15 \text { January 2012 } & & & 975 \\\hline 13 \text { March 2012 } & 920 @ \$ 0.14 & 128.8 & \\\hline 30 \text { March 2012 } & & & \\\hline 15 \text { June 2012 } & 570 @ \$ 0.20 & 114 & \\\hline 28 \text { June 2012 } & & & 300 \\\hline\end{array}$$ The company uses a perpetual inventory system.The net realisable value per extra large cardboard box is $0.17 at the end of the period.What are the costs of sales and the value of ending inventory for Rectangle Ltd assuming the FIFO cost-flow assumption is used?

A) cost of sales: $633.80; ending inventory: $83
B) cost of sales: $654.55; ending inventory: $62.25
C) cost of sales: $657.19; ending inventory: $59.61
D) cost of sales: $633.80; ending inventory: $70.55