Tindo ltd buys and sells product . On 1 June 2022, stock in hand consisted of 5,500
Question:
Tindo ltd buys and sells product . On 1 June 2022, stock in hand consisted of 5,500 units which were acquired at ksh. 50 per unit. The operations for the month were as follows:
Date Purchases Sales
June 2 6,000 @ ksh.48
4 6,500 @ ksh. 60
5 7,500 @ ksh. 49
7 4,000 @ ksh. 50
11 8,000 @ ksh. 61
12 6,000 @ ksh. 50
13 6,000 @ ksh. 47
18 5,000 @ ksh. 62
19 8,000 @ ksh. 64
20 6,000 @ksh. 49.50
21 5,000 @ ksh. 65
22 7,000 @ ksh. 50
25 6,000 @ ksh. 49
26 2,000 @ ksh. 47
28 500 @ ksh. 60
29 14,000 @ ksh. 64
The company incurred operating cost of ksh. 450,000 during the month.
Required:
Prepare the stores ledger card using FIFO AND WEIGHTED AVERAGE
Ascertain the closing inventory and cost of sales using each of the two methods.
Prepare the trading account for the month
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett