Top Tech Pty Ltd sells tempered glass screen protectors for mobile phones. The selling price up to 30 June was \($12\) per unit, but due to rising costs, the selling price was raised to \($14\) for the rest of the year.

Their purchases and sales of this product for the year ended 31 December 2024 are presented in the schedule below: (ignore GST)

Required

(a) Prepare the Statement of Profit or Loss up to the gross profit stage under the following cost flow assumptions:
1. periodic inventory i. FIFO ii. weighted average 2. perpetual inventory i. FIFO ii. moving average.

(b) If 10 of the units sold on 9 October were returned and placed back into inventory, how would this affect profits calculated under A2 (a) and A2 (b) above?

(c) If 5 of the units purchased on 11 December were returned to the supplier, how would this affect profits calculated under A 2 (a) and A 2 (b) above?

Transcribed Image Text:

Purchases Sales Balance Unit Unit Unit Date Units cost Total Units cost Total Units cost Total Jan. 1 80 $5.00 $400 7 40 30 50 Feb. 2 20 60 28 Mar. 16 24 888 $5.10 $255 N 27 5.20 312 50 25 5.20 130 30 5.30 159 27 Apr. 7 23 228 20 15 40 00 5.35 214 18 50 May 4 30 5.30 159 June 2 20 5.40 108 26 40 July 27 30 30 5.40 162 Aug. 6 31 Sept. 11 50 60 26 40 Oct. 9 Nov. 4 40 30 Dec. 11 27 20 80 40 5.50 330 40 5 20 5.50 220 60 40 20 5.60 224 30 5.65 113 20 10