Question
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.
UnitsUnit price $June1Inventory6,1002.204Purchases4,6002.259Sales4,10012Purchases4,1002.4021Sales6,00026Purchases3,1002.50
Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $5 per unit. A stocktake on 30 June revealed 7700 units in inventory. Ignore GST.
Required
- Using the FIFO method, prepare a appropriate inventory record for Product EF5089 for June.
- prepare a income statement down to the gross profit for Tamworth Trading Ltd for June.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
