Why would the expenses come down as the inventory gets bigger?...

Why would the expenses come down as the inventory gets bigger? Why do they have over six months sales in inventory at 31st December? Why did they start with $564,000 in July, spend $436,000 on production costs as per the half year cash flows, only sell $371,000 of stock (for $304,000!) and still only have $356,000 remaining at 31st Dec? The numbers, literally, don’t add up. Need some audited accounts. Due end of next month.