Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fabricks Limited has just begun buying and selling washing powder as an additional product to its main business of providing laundry services. The powder is
Fabricks Limited has just begun buying and selling washing powder as an additional product to its main business of providing laundry services. The powder is purchased in bulk and resold in smaller quantities to customers. Patrick, the manager, provides the following washing powder inventory information that relates to the month of September 2023: The company operates on an accruals basis and uses a periodic inventory system (assume that all sales are on credit and ignore GST). For this question, show all you calculations and answers to 2 decimal places where applicable. - FIFO= First In First Out - WAC= Weighted Average Cost Q10(b): Using FIFO, calculate the total 'cost of sales' from the sale of washing powder for the month ended 30th September 2023. (Show your workings). Q10(c): Using FIFO, calculate the total 'gross profit' from the sale of washing powder for the month ended 30th September 2023. (Show your workings). Q10(d): Using WAC, calculate the value of the washing powder 'ending inventory' at 30th September 2023. (Show your workings). Q10(e): Using WAC, calculate the total 'cost of sales' from the sale of washing powder for the month ended 30th September 2023. (Show your workings). Q10(f): Using WAC, calculate the total "gross profit' from the sale of washing powder for the month ended 30th September 2023. (Show your workings)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started