Question
QN3 Limited applies the perpetual inventory system to control its inventory. The company has an opening inventory of 80 000 units that were purchased at
QN3 Limited applies the perpetual inventory system to control its inventory. The company has an opening inventory of 80 000 units that were purchased at the rate of A$ 5.00 each. During the year, QN3 Limited purchased 680 000 units at the rate of A$ 5.00 each. During this year, QN3 Limited sold 692 000 units at the rate of A$ 11.00. At the end of the year, the company has a closing inventory of 56 000 units at the rate of A$ 5.00 each. Using this data, calculate the followings:
- Calculate the cost of goods sold expenses for the year. [3 Marks]
- Calculate the cost of goods sold expenses for the year, assuming that the company has been using the periodic inventory method. [4 Marks]
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