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Pacific Emporium is a gift shop situated in a small fishing village. The business carries a range of merchandise that it accounts for under the
Pacific Emporium is a gift shop situated in a small fishing village. The business carries a range of merchandise that it accounts for under the perpetual method. Cost is assigned using the FIFO cost formula. All purchases are on FOB shipping terms, with 30 days credit. The end of the reporting period is 30 June. The following information lists the transactions during October 2025 for one item of inventories (wind chimes). Date Detail Number Unit cost Oct. 1 Opening balance 35 8.40 4 Purchase 40 8.50 8 Sale 50 11 Purchase 60 8.60 14 Purchase return 10 8.60 19 Sale 60 24 Sale return (on 19 Oct. sale) 5 28 Purchase 30 8.70 Required For the inventories item (wind chimes), calculate October's cost of sales expense and the cost of inventories on hand at 31 October 2025. Round all figures to the nearest cent. (LO4, LO5 and LO6)
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