During the year ended 30 June 2014, TooBakko Ltd sold each unit of its goods at $9. Purchases and sales of the goods are shown below. Ignore GST.

2013

July        1 Inventory on hand         200 units @ $5.00 each

30 Sales                      120 units

Aug. 25 Purchases               300 @ $5.25

30 Sales                      250 units

Sept. 3 Purchases                450 units @ $5.30

10 Purchases returns         50 damaged units from 3 September purchase

30 Sales                       300 units

Oct.       5 Purchases               300 units § $5.40

Dec.      8 Purchases              250 units at $5.45

11 Sales                      500 units

2014

Feb.       21 Purchases            150 units @ $5.50

Marc 18 Purchases               100 units at $5.60

April 30 Sales                        300 units

May     2 Sales returns                   30 unitsfrom 30 April sales, goods returned to inventory

4 Purchases              250 units @ $5.70

June 6 Purchases          300 units @ $5.85

30 Sales                       460 units

TooBakko Ltd uses a perpetual inventory system.

Required

  1. Using dollars and cents in appropriate inventory records, determine the cost of the inventory at 30 June 2014 under the following inventory cost flow assumptions: (1) FIFO (2) Moving average (round to the nearest cent).
  2. Assuming that a physical count at 30 June 2014 determined that only 300 units remained in inventory, prepare the journal entry to record the fact that some units had gone missing.
  3. Using the moving average method, prepare the Inventory Control, Cost of Sales and Sales accounts CT-account format), assuming that these accounts are balanced yearly on 30 June. Assume as well that the physical count of inventory was as mentioned in requirement B above.

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