Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below. Units Unit price $ 6,100 2.20 4,600 2.25 4,100 4,100 2.40 6,000 3,100 2.50 Tamworth Trading Ltd uses the perpetual inventory system, and Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Required: Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below. Units Unit price $ 6,100 2.20 4,600 2.25 4,100 4,100 2.40 6,000 3,100 2.50 Tamworth Trading Ltd uses the perpetual inventory system, and Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Required: Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4BE: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...
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Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below.
Units Unit price $ 6,100 2.20
4,600 2.25
4,100
4,100 2.40 6,000
3,100 2.50
Tamworth Trading Ltd uses the perpetual inventory system, and
Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST.
Required:
- Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June.
- Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
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