Question
Inventory a) Natasha Burke provides you with the following information in respect of one of her inventory items: 1 March Balance 55 units @ $40.00
Inventory
a) Natasha Burke provides you with the following information in respect of one of her inventory items:
1 March | Balance | 55 units @ $40.00 unit |
8 March | Sold | 35 units @ $90.00 unit |
15 March | Purchased | 60 units @ $45.00 unit |
22 March | Sold | 55 units @ $95.00 unit |
29 March | Purchased | 40 units @ $50.00 unit |
31 March | Stocktake | 60 units on hand |
Tasks
i. Prepare inventory ledger cards for the inventory item using both the FIFO and weighted average methods. Round unit costs to the nearest cent.
ii. Show balances for the cost of goods sold, sales and gross profit under both the FIFO and weighted average methods.
b) Explain why Natasha Burke may use both a perpetual inventory system and a periodic system in her gift store.
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