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.
Date Units Unit price($)
Jun 1 Inventory 6100 2.20
4 Purchases 4600 2.25
9 Sales 4100
12 Purchases 4100 2.40
21 Sales 6000
26 Purchases 3100 2.50
Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. The selling price is $5 per unit. A stock-take on 30 June revealed 7,700 units in inventory. Ignore GST.
Required:
a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June.
b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started