The following information was obtained from the accounting records of Letty Stores for the financial year ended 30 June 2021:
R
Inventory (1 July 2020)
100 000
Sales
600 000
Purchases
400 000
Sales returns
2 000
Purchases returns
3 000
Drawings: Bank
1 000
Inventory (30 June 2021)
120 000
Additional information:
1. On 29 June 2021, the owner took inventory with a cost price of R20 000 for own use. This transaction has not yet been recorded.
The entity uses the periodic inventory control system.
Required:
Use the information provided above to calculate the cost of sales for the year ended 30 June 2021.