Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of...

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Accounting

Tamworth Trading Ltd is a company operating in the retail sector. The beginning inventory of Product EF5089 and information about purchases and sales made during June are shown below.

June 1 Inventory 5,370 units @ $2.30
4 Purchases 4,050 units @ $2.25
9 Sales 3,610 units
12 Purchases 3,610 units @ $2.10
21 Sales 2,730 units
24 Sales 2,550 units
26 Purchases 2,730 units @ $2.50
30 Sales 2,290 units

Tamworth Trading Ltd uses the perpetual inventory system, and all purchases and sales are on credit. Selling price is $7 per unit. GST is 10% and is not included in any of the costs and selling prices above. A stocktake on 30 June revealed 4,530 units in inventory.

Using the FIFO method, prepare appropriate purchases and sales journals to record these events. (Round per unit cost to 2 decimal places, e.g. 5.27 and final answers to 0 decimal places, e.g. 5,275.)

Prepare an appropriate inventory record for Product EF5089 for June, and post the journals prepared in requirement A above to the appropriate general ledger accounts (assuming that product EF5089 is the only product bought and sold by Tamworth Trading Ltd). (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

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