Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below. Units Unit price $ June 1 Inventory 6,100 2.20 4 Purchases 4,600 2.25 9 Sales 4100 12 Purchases 4100 2.40 21 Sales 6000 26 Purchases 3100 2.50 Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Required: a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below. Units Unit price $ June 1 Inventory 6,100 2.20 4 Purchases 4,600 2.25 9 Sales 4100 12 Purchases 4100 2.40 21 Sales 6000 26 Purchases 3100 2.50 Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST. Required: a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June. b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product
EF5089 and information about purchases and sales made during June are shown below.
| Units | Unit price $ | |||
| June | 1 | Inventory | 6,100 | 2.20 |
| 4 | Purchases | 4,600 | 2.25 | |
| 9 | Sales | 4100 | ||
| 12 | Purchases | 4100 | 2.40 | |
| 21 | Sales | 6000 | ||
| 26 | Purchases | 3100 | 2.50 |
Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit.
Selling price is $5 per unit. A stocktake on 30 June revealed 7,700 units in inventory. Ignore GST.
Required:
a) Using the FIFO method, prepare an appropriate inventory record for Product EF5089 for June.
b) Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education