Solution-Determine the ending inventory and cost of sales

Determine the ending inventory and cost of sales

Reference no: EM132846589

Question - XY Ltd's sells T-shirts. It uses the periodic inventory system. It's inventory at the beginning of the month June and all purchases during the month of June 2019 are provided as below. Ignore GST

	units	total costs ($)
1/6 beginning inventory	1050	18900
10/6 purchase	750	14175
15/6 purchase	450	8910
23/6 purchase	750	15750
Totals	3000	57735

A physical count on 30 June verified that 975 units were on hand.

Required -

a) Determine the Ending inventory and Cost of Sales for the month of June, using the FIFO costing method.

b) If all inventories are sold in the same price of $50, prepare the relevant part of the income statement for the month of June.

c) Would you recommend the Perpetual Inventory System to the management of XY Ltd? Explain the reason for your recommendation.

Reference no: EM132846589

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Determine the ending inventory and cost of sales : A physical count on 30 June verified that 975 units were on hand. Determine Ending inventory and Cost of Sales for month of June, using the FIFO costing method

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Determine the ending inventory and cost of sales

Reference no: EM132846589

Reference no: EM132846589

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