please do not give solution in image format Rosa Cosmetics Ltd uses the FIFO method and perpetual inventory system. The company has thefollowing inventory purchases and sales data for the month of March 2022. Assume all purchasesand sells are on credit.InventoryPurchasesMar-01Sales200 Units @ $4.00Paid outstanding Freight ExpenseMar-10 500 units @ $4.50Purchase Return Mar-31Paid Freight ExpenseMar-20 400 units@ $4.75Paid Freight ExpenseMar-30 300 units @ $5.00Paid Freight Expense$800.00$275.00$2.250.00$250.00$1,900.00$250.00$1,500.00$275.00$250.00$ 3500.00$3000.0050 unites @ $5.00Mar-15 500 units @ $7.00Mar-25 400 units @ $7.50The physical inventory count on 31 of March shows 400 units on hand.Required:a. Prepare General Journal entries to record the transactions, using First in First out forstock movements and if necessary show the entry for any stock loss or gain for theperiod. (No narration required).b. Prepare an extract of Income Statement up to the gross profit stage, based on aPerpetual Inventory System for the period ended 31 March 2022, using First-In-FirstOut for the movement of stock.

Rosa Cosmetics Ltd uses the FIFO method and perpetual inventory system. The company has the following inventory purchases and sales data for the month of March 2022. Assume all purchases and sells are on credit. Inventory Mar-01 Purchases Mar-10 Mar-20 Mar-30 Sales 200 Units @ $4.00 Paid outstanding Freight Expense $800.00 $275.00 500 units @ $4.50 Paid Freight Expense 400 units @ $4.75 Paid Freight Expense 300 units @ $5.00 Paid Freight Expense Purchase Return Mar-31 50 unites @ $5.00 Mar-15 500 units @ $7.00 Mar-25 400 units @ $7.50 The physical inventory count on 31 of March shows 400 units on hand. Required: a. Prepare General Journal entries to record the transactions, using First in First out for stock movements and if necessary show the entry for any stock loss or gain for the period. (No narration required). b. Prepare an extract of Income Statement up to the gross profit stage, based on a Perpetual Inventory System for the period ended 31 March 2022, using First-In-First Out for the movement of stock. $2.250.00 $250.00 $1,900.00 $250.00 $1,500.00 $275.00 $250.00 $3500.00 $3000.00

Rosa Cosmetics Ltd uses the FIFO method and perpetual inventory system. The company has the following inventory purchases and sales data for the month of March 2022. Assume all purchases and sells are on credit. Inventory Mar-01 Purchases Mar-10 Mar-20 Mar-30 Sales 200 Units @ $4.00 Paid outstanding Freight Expense $800.00 $275.00 500 units @ $4.50 Paid Freight Expense 400 units @ $4.75 Paid Freight Expense 300 units @ $5.00 Paid Freight Expense Purchase Return Mar-31 50 unites @ $5.00 Mar-15 500 units @ $7.00 Mar-25 400 units @ $7.50 The physical inventory count on 31 of March shows 400 units on hand. Required: a. Prepare General Journal entries to record the transactions, using First in First out for stock movements and if necessary show the entry for any stock loss or gain for the period. (No narration required). b. Prepare an extract of Income Statement up to the gross profit stage, based on a Perpetual Inventory System for the period ended 31 March 2022, using First-In-First Out for the movement of stock. $2.250.00 $250.00 $1,900.00 $250.00 $1,500.00 $275.00 $250.00 $3500.00 $3000.00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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