Question
XYZLtd. deals in the purchase and sale of hardware products. The company recorded the following transactions in relation to product JL-40 during the month of
XYZLtd. deals in the purchase and sale of hardware products. The company recorded the following transactions in relation to product JL-40 during the month of September 2018: Date Purchaases Sales Quantity (Units) Sh. per unit September Quantity (Units) Sh. per unit 10,000 6,000 4 32.00 10,000 40.00 8.000 1.00 3,000 2.00 6,000 41.00 8.00 TO,000 5.000 30.50 28 9,000 . Adaiton i s stock of product JL-40 on 1 September 2018 comprised 7,000 units purchased at a cost of Sh 27 per unit. On 9th September 2018, the company reported a shortage of 400 units. On 20 September 2018,1000 units sold on 15 September 2018 were returned by a customer. Operating expenses for the month of September 2018 amounted to Sh.250,000. Required: Using the Last In First Out (LIFO) method prepare: marks) Stores ledger card for product JL.-40 tor the month of September 2018. (11) Income statement for product JL-40 for the month ended 30 September 2018. (4 marks)
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