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Perpetual inventory system Kagawa Limited maintains a Perpetual Inventory System to account for its...

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Accounting

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Perpetual inventory system

Kagawa Limited maintains a Perpetual Inventory System to account for its inventory. Date 1 July 20X9 4 July 20X9 10 July 20X9 18 July 20X9 28 July 20X9 Item Beginning Inventory Purchase Sale Purchase Sale Quantity 400 units at $45 each 200 units at $48 each 400 units at $70 each 150 units at $52 each 100 units at $80 each Other information: (1) On 31 July 20X9, a physical stock count was conducted. 12 units were found to be damaged and had to be discarded. This stock loss would be treated as part of operating expenses. (2) Other operating expenses for the month of July 20X9 amounted to $2,100. Required (a) Prepare a stock card for the month of July 20X9 under the Weighted Average Cost (WAC) cost flow assumption using the following format (Round your answers to 2 decimal places): Date Qty In Unit Total Cost Costs ($) ($) Out Qty Unit Cost ($) Total Costs ($) Balance Qty Unit Cost ($) Total Costs ($) (b) Prepare the Statement of Comprehensive Income for the month of July 20X9. Show all workings clearly. (c) Without any calculation, briefly explain whether gross profit would be higher or lower than the amount in (b) if first-in-first-out (FIFO) method was adopted

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