Reference no: EM132660650

The following information has been extracted from the records of Kakadu Ltd, which sells special camping tents. The company uses the perpetual inventory system to record stock. Its monthly reporting date is 31 May. Kakadu Ltd uses the FIFO Method.

Date                                          Transaction                 Quantity $              Unit cost

1/05                                Beginning balance              6                         720
6/05                              Purchases (850/unit)               4                      600
16/05                              Sold @1700/unit                    8                         ?
17/05                           Purchases                              6                            650
29/05                         Sold @ 1500/unit                      2                            ?
30/05                       Sales Return from 29/03 Sales       1                               ?

Required:

Problem a) Ignoring GST and narrations, complete the inventory stock record shown above for transactions during the month of May.

Problem b) Calculate the cost of inventory on hand as at 31 May and the cost of sales as at 31 May.