Joe Bhengu uses the FIFO method to account for inventory in his retail business.

Opening inventory on 1 January 20x1 consists of:

Transactions for January:

1. Sold two printers for R450 each.

2. Bought two photocopiers for R850 each.

3. Sold one computer for R6 800.

4. Bought one photocopier for R860 and six printers for R350 each.

5. Sold four printers for R460 each.

6. Sold three photocopiers for R920 each.

7. Sold eight printers for R460 each.

At the end of the month, the market values were:

You are required to:

1. Calculate the total inventory on hand at the end of January 20x1, assuming the perpetual inventory system is used.

2. Calculate the profit and loss in respect of each sale.

Transcribed Image Text:

40 printers 4 photocopiers 2 computers @ R300 each @ R800 each @R6 000 each 12 000 00 3 200 00 12 000 00 27 200 00