The sixth formers at the Broadway School run a tuck shop business. They began trading on 1 December 2016 and sell two types of chocolate bar, 'Break' and 'Brunch'.

Their starting capital was a £200 loan from the School Fund. Transactions are for cash only.

Each Break costs the sixth form 16p and each Brunch costs 12p. 25% is added to the cost to determine the selling price.

Transactions during December are summarized as follows:

December 6 Bought 5 boxes, each containing 48 bars, of Break; and 3 boxes, each containing 36 bars of Brunch.

December 20 The month's sales amounted to 200 Breaks and 90 Brunches.

(a) Record the above transactions in the cash, purchases and sales accounts. All calculations must be shown.

(b) On 20 December (the final day of term) a physical stocktaking showed 34 Break and 15 Brunch in inventory. Using these figures calculate the value of the closing inventory, and enter the amount in the inventory account.

(c) Prepare a trading account for the tuck shop, calculating the gross profit/loss for the month of December 2016.

(d) Calculate the number of each item that should have been in inventory. Explain why this information should be a cause for concern.