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Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below.
June | 1 | Inventory | 7,320 | units @ $1.90 | |||
4 | Purchases | 5,520 | units @ $2.15 | ||||
9 | Sales | 4,920 | units | ||||
12 | Purchases | 4,920 | units @ $2.40 | ||||
21 | Sales | 3,720 | units | ||||
24 | Sales | 3,480 | units | ||||
26 | Purchases | 3,720 | units @ $2.50 | ||||
30 | Sales | 3,120 | units |
Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $6 per unit. GST is 10% and is not included in any of the costs and selling prices above. A stocktake on 30 June revealed 6,180 units in inventory. Using the FIFO method, prepare appropriate purchases and sales journals to record these events.
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