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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.
|
|
| Units | Unit price $ |
June | 1 | Inventory | 6,100 | 2.20 |
| 4 | Purchases | 4,600 | 2.25 |
| 9 | Sales | 4,100 |
|
| 12 | Purchases | 4,100 | 2.40 |
| 21 | Sales | 6,000 |
|
| 26 | Purchases | 3,100 | 2.50 |
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 7,700 units in inventory. Ignore GST.
Required:
- Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. (8 marks)
- Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June. (2 marks)
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