Question
The following information has been extracted from the records of Bradbury Pty Ltd, which is a retailer of office stationery and art supplies. The company
The following information has been extracted from the records of Bradbury Pty Ltd, which is a retailer of office stationery and art supplies. The company uses the perpetual inventory system to record the inventory of its products. Its monthly reporting date is 30 April.
Required:
- Ignoring GST, complete the inventory stock record below for one of Bradburys products a specialty pen. All transactions occurred in the month of April. (8 marks)
- Calculate the Cost of Sales (COS) for 30 April, assuming the FIFO Method. (1 mark)
- Calculate the Ending Inventory at 30 April, assuming the FIFO Method. (1 mark)
- Briefly define the term FIFO as an inventory method. (1 mark)
(Note: please write your answers in by completing the table, as provided below.)
Date | Transaction | Quantity | $ Unit Cost |
1/04 | Beginning balance | 600 | 5.00 |
6/04 | Purchases | 400 | 5.20 |
15/04 | Sold @ $10(sales price per unit)) | 800 | ? |
20/04 | Purchases | 600 | 4.75 |
25/04 | Sold @$12(sales price per unit) | 400 | ? |
30/04 | Sales Return from 25/04 Sales | 100 | ? |
COS |
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Ending Inventory |
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