Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Research Methods

Authors: Phyllis Tharenou, Ross Donohue, Brian Cooper

1st Edition

0521694280, 9780521694285

More Books

Students also viewed these Accounting questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago