Question 1 Mr. DIY, a retail store in Malaysia has the following inventory records for March 2022: Date Item Quantity (Units) Unit Cost (S) 7 71 8 March 2 Opening Inventory 7 Purchase 1 22 Purchase 2 25 Sales 28 Purchase 3 110 50 125 250 100 10 Operating expenses incurred for March 2022 was $2,700. The company total revenue generated for the month of March 2022 was $8,000. Required: a) Prepare the March 2022 income statement to show the amounts for first-in-first-out (FIFO) and weighted average cost for the following inventory management systems: i) Periodic inventory system ii) Perpetual inventory system b) Prepare the bottom line' operating profits for the two inventory management approaches in a) i) and ii). You are required to show your calculations for the cost of goods sold (COGS).

Question 1 Mr. DIY, a retail store in Malaysia has the following inventory records for March 2022: Date Item Quantity (Units) Unit Cost (S) 7 71 8 March 2 Opening Inventory 7 Purchase 1 22 Purchase 2 25 Sales 28 Purchase 3 110 50 125 250 100 10 Operating expenses incurred for March 2022 was $2,700. The company total revenue generated for the month of March 2022 was $8,000. Required: a) Prepare the March 2022 income statement to show the amounts for first-in-first-out (FIFO) and weighted average cost for the following inventory management systems: i) Periodic inventory system ii) Perpetual inventory system b) Prepare the bottom line' operating profits for the two inventory management approaches in a) i) and ii). You are required to show your calculations for the cost of goods sold (COGS).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information pertains to Julia & Company: March 1 Beginning inventory = 26 units @ $5.40 March 3 Purchased 17 units @ 4.20 March 9 Sold 26 units @ 8.30 What is the cost of goods sold for Julia & Company assuming it uses LIFO?
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