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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.
Date
Units
Unit price($)
Jun 1
Inventory
6100
2.20
Jun 4
Purchases
4600
2.25
Jun 9
Sales
4100
Jun 12
2.40
Jun 21
6000
Jun 26
3100
2.50
Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. The selling price is $5 per unit. A stock-take 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.
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