You are the cost accountant of Excellent Construction Pty Ltd and your company buys and sells a single standard type of brick. The details for the year ended 31 June 2023 are as follows:

1 July 2022: Opening inventory: 600 bricks at R62 each

30 April 2022: Purchased 115 bricks at R65 each

Carriage on these bricks amounted to R250

31 December 2022: Purchased 185 bricks at R75 each

Carriage on the bricks amounted to R700

31 May 2023: Purchased 220 bricks at R85 each

Carriage on the bricks amounted to R 1 200

During the financial year ended 31 June 2023, 550 bricks were sold R 120 for each.

Assume the business uses the FIFO method of valuing inventory.

1. 1. How many units of inventory were on hand on 31 June 2023?
2. 2. What is the cost of sales of the 550 bricks sold during the financial year ending 31 June 2023?
3. 3. What is your company’s gross profit?
4. 4. What is your company’s mark-up percentage for the year (Round up or down your answer to the nearest whole number).
5. 5. What is the total amount in your company’s trading account using the perpetual inventory system.

Answer rating: 100% (QA)

To calculate the answers to these questions we will use the FIFO FirstIn FirstOut method to determine the cost of inventory and cost of goods sold FIF... View the full answer