Solution-Prepare an income statement down to the gross

Prepare an income statement down to the gross profit

Reference no: EM132571387

Question - 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.

Reference no: EM132571387

Questions Cloud

Discuss in detail to enlighten your colleague : Can facts discovered after the issue of the financial statements have an impact on our (auditor's) report? Discuss in detail to enlighten your colleague

Proficiency level analysis assignment : This activity builds upon the Proficiency Level Analysis assignment from Topic 3. Key vocabulary that you would pre-teach the students in Ms. Jensen's class;

Why do you think the decision maker acted : Think about the last time that you (1) were treated unfairly because you differed from a decision maker on a particular dimension

Find financial statements might one be able to see impact : If a company's CVP analyses showed it was not operating at break-even, where on the financial statements might one be able to see this impact.

Prepare an income statement down to the gross profit : Tamworth Trading Ltd uses the perpetual inventory system, Prepare an income statement down to the gross profit for Tamworth Trading Ltd for June

Plastic pollution could be harming us : The purpose of this visual is to inform people, plastic pollution could be harming us if we eat fish.

What would be included and excluded in differential analysis : What would be included and excluded in differential analysis? Propose specific revenues and costs should be considered in an evaluation to drop

Physical activity is component of children development : Physical activity is a component of children's development that will be incorporated into everyday learning.

Find direct materials used and finished goods inventory : Find direct materials used and finished goods inventory and factory overhead applied actual factory overhead direct labor used.

User Account

All Pages

Prepare an income statement down to the gross profit

Reference no: EM132571387

Reference no: EM132571387

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How many units were completed and transferred

What is the balance of the accumulated depreciation account

Calculate the present value of the two options

Compare the role of transfer pricing in a domestic

What amount of interest will be attributed to jerry

The partnership incurred losses in recent years and decided

What is meant by earnings persistence

Prepare n amortization schedule

Palomar purchased another tract of land

Discuss the changing income and retained earnings

Journalize the entries to record the forgoing transactions

Compute depreciation for each of the five years

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT