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 2003. 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
E) None of the given answers.