Prospect Ltd., which uses FIFO method of inventory management, began in June with 75 units of inventory
Fantastic news! We've Found the answer you've been seeking!
Question:
Prospect Ltd., which uses FIFO method of inventory management, began in June with 75 units of inventory that cost $15 each. During June, it completed the following inventory transactions:
Sale Price June 7 Purchase 20 $16
June 13 Sale 71 $25
June 19 Purchase 38 $18
June 27 Sale 42 $27 .
Required
a) Prepare a perpetual inventory record for internal reporting purposes under FIFO method.
b) Journalise, with explanations, the above transactions.
c) Prepare T accounts for Inventory, cost of sales and revenue.
d) Compute gross profit for Prospect Ltd. for June.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date: