Reference no: EM132420892

Problem: On 1 July 20x2 (the first day of the financial year), Large Mart decides to start selling electric bicycles (e-bikes). Initially, Large Mart places an order for 100 e-bikes (for $500 per e-bike), and the first e-bikes arrive at Large Mart on 5 July 20x2. Following an advertising campaign, the e-bikes become a big seller and Large Mart makes the following sales and purchase transactions during the year ended 30 June 20x3:

Sale (10 August 20x2) of 50 e-bikes for a price of $900 per e-bike

Purchase (1 September 20x2) of 50 e-bikes for $450 per e-bike

Sale (5 September 20x2) of 60 e-bikes for $800 per e-bike

Sale (12 November 20x2) of 20 e-bikes for $910 per e-bike

Large Mart accounts for its inventory using the first-in-first-out cost flow assumption and the perpetual inventory system.

Required:

a) Calculate the cost of all e-bikes sold during the year ended 30 June 20x3, AND outline all necessary calculations.

b) Calculate the value of all e-bikes that remain in the inventory account on 30 June 20x3, AND outline all necessary calculations.

c) Calculate the amount of revenue that the e-bikes have generated for Large Mart during the year ended 30 June 20x3, AND outline all necessary calculations.