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undefined Always Warm Mugs (AWM) sells self-warming coffee mugs and has a year-end of 30 November. AWM uses the perpetual inventory recording system, and the
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Always Warm Mugs (AWM) sells self-warming coffee mugs and has a year-end of 30 November. AWM uses the perpetual inventory recording system, and the First-In First-Out cost allocation method. During November 2020, AWM kept the following record relating to the coffee mugs: Date Transaction Number of coffee Cost per coffee mug mugs 1 November Opening balance 12 R93.00 2 November Purchase 120 R85.00 8 November Purchase 25 R90.00 12 November Credit sale 142 25 November Purchase 220 R82.50 28 November Cash sale 179 On 30 November 2020, the physical inventory count revealed that 41 coffee mugs were on hand. At 30 November 2020, which of the following general ledger accounts correctly reflects the above information, after adjustments have been processed? OA Cost of sales expense (E) Purchases 12 180 Purchases 14 790 OB. Cost of sales expense (E) Purchases Inventory Inventory 3 449 30 600 1 237.50 OC Cost of sales expense (P/L) Inventory Inventory Inventory 12 216 14 880 1 237.50 D. Cost of sales expense (P/L) Inventory Inventory Inventory 12 192 14 638 245 Cost of sales expense (P/L) Inventory Purchases Inventory 3449 1 116 30 600Step by Step Solution
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