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Saturn Enterprise is an Australian GST-registered business that uses a periodic inventory system to sell colorful wrist bands to retailers throughout the country. Its transactions
Saturn Enterprise is an Australian GST-registered business that uses a periodic inventory system to sell colorful wrist bands to retailers throughout the country. Its transactions for November 2021 are as follows: Date Particulars Quantity (box) Unit Cost (per box) Nov 1 Beginning Inventory 9,000 $52 Nov 5 Purchases 5,500 $50 Nov 12 Sales 11,000 Nov 15 Purchases 2,000 $53 Nov 23 Sales returns 10 Nov 29 Purchases Returns $53 $50 50 The selling price for each box of wrist band is $100 exclusive GST. REQUIRED: Show all workings and explanations to secure maximum marks. a. If Saturn Enterprise uses the Weighted Average method cost flow assumption, i. calculate the cost of sales for November 2021. [8 marks] ii. calculate the gross profit for November 2021. [2 marks] iii. calculate the value of the ending inventory on 30 November 2021. [4 marks] Please use average unit cost rounded to two decimal points
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