Q. 5 Prospect Ltd., which uses FIFO method of inventory management, began in June with 75...

Q. 5 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: Units Unit Cost Unit 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. (marks: 8) b) Journalise, with explanations, the above transactions. (marks: 5) c) Prepare T accounts for Inventory, cost of sales and revenue. (marks: 3) d) Compute gross profit for Prospect Ltd. for June. (marks:1)

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ekkarill92 answered 1 year ago

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