Anna’s Frozen Treats Ltd sells only one product
Question 1: Inventories Anna’s Frozen Treats Ltd sells only one product, a refreshing lemonade ice-block that is very popular during the summer. The company uses the perpetual inventory system for recording its cost of sales. The inventories and purchases for the month of December 2019 are as follows: December Purchases Sales Quantity Cost per unit Quantity 1 Beginning inventory 100 1.00 3 Purchase 200 1.30 7 Sales 220 9 Purchase 200 1.80 14 Sales 280 18 Purchase 300 2.00 21 Sales 200 30 Purchase 100 2.20 During the month units were sold for $3.50 per unit. Required: For the purpose of this question, please ignore GST. Show ALL your workings. Calculate the cost of goods…
Details