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. June 1 Inventory 7,320 units @ $1.90 4 5,520 units @ $2.15 Purchases Sales 9 4,920 units Purchases 4,920 units@ $2.40 Sales 3,720 units Sales 3,480 units Purchases 3,720 units @ $2.50 3,120 units 12 21 24 26 30 Sales Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $6 per unit. GST is 10% and is not included in any of the costs and selling prices above. A stocktake on 30 June revealed 6,180 units in inventory. Using the FIFO method, prepare appropriate purchases and sales journals to record these events.
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. June 1 Inventory 7,320 units @ $1.90 4 5,520 units @ $2.15 Purchases Sales 9 4,920 units Purchases 4,920 units@ $2.40 Sales 3,720 units Sales 3,480 units Purchases 3,720 units @ $2.50 3,120 units 12 21 24 26 30 Sales Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $6 per unit. GST is 10% and is not included in any of the costs and selling prices above. A stocktake on 30 June revealed 6,180 units in inventory. Using the FIFO method, prepare appropriate purchases and sales journals to record these events.
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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