Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of ProductEF5089 and information about purchases and sales made during June are shown below.Units Unit price $June 1 Inventory 6,100 2.204 Purchases 4,600 2.259 Sales 4,10012 Purchases 4,100 2.4021 Sales 6,00026 Purchases 3,100 2.50Tamworth 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 ProductEF5089 and information about purchases and sales made during June are shown below.Units Unit price $June 1 Inventory 6,100 2.204 Purchases 4,600 2.259 Sales 4,10012 Purchases 4,100 2.4021 Sales 6,00026 Purchases 3,100 2.50Tamworth 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

Name: Tamworth Trading Ltd is a company operating in the retail sector. The
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Description: Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of ProductEF5089 and information about purchases and sales made during June are shown below.Units Unit price $June 1 Inventory 6,100 2.204 Purchases 4,600 2.259

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 7MCQ

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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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 4,100
12 Purchases 4,100 2.40
21 Sales 6,000
26 Purchases 3,100 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

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Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory ofProduct EF5089 and information about purchases and sales made during June are shown below. Units Unit price $June 1 Inventory 6,100 2.204 Purchases 4,600 2.259 Sales 4,10012 Purchases 4,100 2.4021 Sales 6,00026 Purchases 3,100 2.50Tamworth 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 7700 units in inventory. Ignore GST.Requireda) 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.
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