Surfers Paradise Sofa Private Limited is a hypothetical company that has been operating its business...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Surfers Paradise Sofa Private Limited is a hypothetical company that has been operating its business for the last couple of years. Using the perpetual inventory system, the firm prepares its financial statements at the end of each month. The information below related to one specific type of inventory has been extracted from the firms accounting records for August.
| Date | Transactions | Quantity | $ Unit cost |
| May |
|
|
|
| 1 | Beginning balance | 30 | $3 600 |
| 5 | Sales @ $9 680 per unit | 18 | To be calculated |
| 10 | Purchases | 60 | $4 080 |
| 17 | Purchase return (from 10th May purchase) | 6 | $4 080 |
| 20 | Sales @ $9 790 per unit | 30 | To be calculated |
| 30 | Sales return (from 20th May sales) | 3 | To be calculated |
Required: a) Based on the above information, prepare an inventory card assuming the First In First Out cost flow
b) Identify the following:
1. The cost of inventory on hand on the last day of the month
2. The cost of sales for the month
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.