The following information relates to the inventory of Gadgets Ltd during May. 1 st May Beginning inventory 80 units @ $6 3 rd May Purchased 90 units @ $9 10th May Purchased 110 units @7 12th May Sold 90 units 17th May Sold 80 units 25th May Sold 30 units Gadgets Ltd uses a perpetual inventory system. Ignore GST. Required You are required to prepare inventory cost flow tables, and determine the cost of the ending inventory (assuming there have been no stock losses) and the cost of sales, using the following two methods: 1. The average cost method; round your calculations to two decimal places. 2. FIFO.. Do not give solution in image format
The following information relates to the inventory of Gadgets Ltd during May. 1 st May Beginning inventory 80 units @ $6 3 rd May Purchased 90 units @ $9 10th May Purchased 110 units @7 12th May Sold 90 units 17th May Sold 80 units 25th May Sold 30 units Gadgets Ltd uses a perpetual inventory system. Ignore GST. Required You are required to prepare inventory cost flow tables, and determine the cost of the ending inventory (assuming there have been no stock losses) and the cost of sales, using the following two methods: 1. The average cost method; round your calculations to two decimal places. 2. FIFO.. Do not give solution in image format
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information relates to the inventory of Gadgets Ltd during May.
1 st May Beginning inventory 80 units @ $6
3 rd May Purchased 90 units @ $9
10th May Purchased 110 units @7
12th May Sold 90 units
17th May Sold 80 units
25th May Sold 30 units
Gadgets Ltd uses a perpetual inventory system. Ignore GST.
Required
You are required to prepare inventory cost flow tables, and determine the cost of the ending inventory (assuming there have been no stock losses) and the cost of sales, using the following two methods: 1. The average cost method; round your calculations to two decimal places. 2. FIFO..
Do not give solution in image format
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 4 steps
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