On 1 January Year 6 the management of Florentine Ltd, retailers of electrical goods, decided to add home computers to their range. Initially this was to be on a temporary basis, and they required monthly trading statements to enable profitability to be measured. In the first 6 months, only one model was marketed. In each of these months, 200 units were bought and 180 units were sold, at the following prices:

Because of increasing competition no further computers were bought, and those remaining were sold in July for £190 each.

Required:

Prepare Trading Accounts (in columnar form) for each of the seven months January to July, using the FIFO (first in, first out) basis of stock valuation.

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200 Purchase Price (per unit) 180 Selling Price (per unit) January 200 300 February 180 270 March 160 250 April 160 240 May 150 220 June 140 200 July 190