"Barre Bien Ltda" is a trading company whose business is the
buying and selling handmade brooms. As of July 31, 2018, it had
a stock of 50 brooms, valued at a net value of $3,500 each.
In August the company made purchases and sales of brooms,
which are detailed below:
03: He bought 400 brooms at a net value of $3,700 each.
05: Sold 350 brooms at a gross value of $4,760 each.
08: Sold 70 brooms at a gross value of $4,760 each.
20: Bought 500 brooms at a net worth of $4,200 each
25: Sold 470 brooms for a total net worth of $1,974,000.
Note: Assume purchases and sales are in cash.
Based on the above information:
1. Prepare the stock control card using the Fifo system.
2. Record in accounting the purchase and sale operations of the
May 3 and 5.
3. The accountant of the company recommends that in order to show
greater utility the company should use the Fifo System