Thảo luận nhóm TMU FINANCIAL ACCOUNTING 1

Purchases of goods 9,200Sales of goods profit margin 30% on sales 18,000 Goods returned by Q to supplier 600 What adjusted figure should be included in the financial statements for inven

TRƯỜNG ĐẠI HỌC THƯƠNG MẠI KHOA KẾ TOÁN-KIỂM TOÁN

FINANCIAL ACCOUNTING 1

Lớp học phần: 20713EACC0811

Nhóm 2 Giảng viên: Phạm Thanh Hương

- -BÀI THẢO LUẬN

DANH SÁCH THÀNH VIÊN NHÓM 2

1 Nguyễn Hương Giang 18D155029

2 Nguyễn Thị Thanh Giang 18D155032

Question 1: The information below relates to inventory item X

June 1 30 units held in opening inventory at a cost of $40 per unit

15 50 units purchased at a cost of $30 per unit

23 60 units sold at a selling price of $60 per unit

30 40 units purchased at a cost of $25 per unitUnder AVCO, what is the value of inventory held for item X at the end of June 30?

A $1850

B $2450

C $1870

D $1240

Question 2: A firm has the following transactions with it product X

1 January 20X1 opening inventory: nil

1 February 20X1 buys 10 units at $200 per unit

11 February 20X1 buys 12 units at $220 per unit

1 April 20X1 sells 8 units at $350 per unit

1 August 20X1 buys 5 units at $180 per unit

1 December 20X1 sells 10 units at $400 per unitThe firm uses periodic weights average cost to value its inventory What is theinventory value at the end of the year?

a total inventory value of $724,800

Between 31 December and 4 January 20X5, the following transactions took place:

$

Purchases of goods 9,200

Sales of goods (profit margin 30% on sales) 18,000

Goods returned by Q to supplier 600

What adjusted figure should be included in the financial statements for inventories

at 31 December 20X4?

A $734,300

B $853,200

C $728,800 D.$756,800

Question 4

Infomation relating to Lauren Co’s transactions for the month of May 20X4 isshown below:

Sale (including tax) $160000Purchase (net of sales tax) $85000Sale tax is charged at a flat rate of 20% Lauren Co’s sales tax account had a zerobalance at the beginning of the month and at the end of the month.

Lauren Co’s sales for the month of $160000 included $30000 of sales exempt fromsales tax What was the total sales tax paid to regulatory authorities at the end ofMay 20X4 (to the nearest $)?

The inventory value for the financial statements of Global Inc for the year ended

30 June 20X3 was based on a inventory count on 7 July 20X3, which gave a totalinventory value of $960000 Between 30 June and 7 July 20X6, the followingtransactions took place

Sale of goods (mark-up on cost at 15%) $14000Goods returned ny Global Inc to supplier $1550What figure should be included in the financial statements for inventories at 30June 20X3?

1 An inventory record shows the following details:

March 1 20 units in stock at a cost of $40 per unit

5 80 units purchased at a cost of $42 per unit

10 70 units sold

20 60 units purchased at a cost of $50 per unit

28 65 units soldWhat is the value of inventory at 28 March using the AVCO method?

In the first accounting period where the change is made, opening inventory valued

by the FIFO method was $60200 Closing inventory valued by the AVCO methodwas $69800

Total purchase and during the period were $140500 Using AVCO method,opening inventory would have been valued at $66200

What is the cost of materials that should be included in the statement of profit orloss for the period?

A $136,900

B $136,090

Calculate the gross profit for the year ended 31 December 20X7.

$3,000 have not been sold by the end of the year

What profit has he made in the year?

July 01: Beginning inventory, 500 units @ $20 per unit.

July 18: Inventory purchased, 800 units @ $24 per unit

July 25: Inventory purchased, 700 units @ $26 per unit

The Delta company sold 1,400 units during the month of July

Required: Compute inventory on July 31, 2016 and cost of goods sold for themonth of July using following inventory costing methods: First in, first out (FIFO)method?

The closing inventory at cost of Vina skirt at 31/01/20X3 amounted to $300,700

The following items were included at cost in the total:

1 400 hats, which had cost $50 each and normally sold for $80 each Owing to adefect in manufacture, they were all sold after the reporting date at 50% of theirnormal price Selling expenses amounted to 5% of the proceeds

2 800 skirts, which had cost $20 each These too were found to be defective

Remedial work in February 20X3 cost $5 per skirt, and selling expenses for thebatch totaled $800 They were sold for $30 each

What should the inventory value be according to IAS 2 Inventories afterconsidering the above items?

The Trial balance as at 31 October 20X7

Closing inventory has been counted and is valued at $75Ignoring the depreciation charge calculated earlier, what is the cost of sales for theyear?

A 1300

The inventory counters of Lala Co inform you that there are 4,000 items of product

A, and 1,000 of product B, these cost $10 and $6 respectively They also tell youthe following information:

Product A – 500 of these were found to be defective and would be sold at a cutprice of $6.

Product B – 200 of these were also to be sold for $4 with selling expenses of $1.50each

What figure should appear in Crocodile's statement of financial position forinventory?

In the first accounting period where the change is made, opening inventory valued

by the FIFO method was $54000 Closing inventory valued by the AVCO methodwas $60200

Total purchases and during the period were $140300 Using the continous AVCOmethod, opening inventory would have been valued at $55000

What is the cost of materials that should be included in the statement of profit orloss for the period?

For many years XYZ plc has experienced rising prices for raw material I, and haskept constant inventory levels It has always used the AVCO method to arrive atthe cost of inventory If XYZ plc had always used the FIFO method, in eachexcessive year's financial statements would result in:

A Lower cost of sales and higher closing inventory

B Lower cost of sales and lower closing inventory

C Higher cost of sales and lower closing inventory

D Higher cost of sales and higher closing inventory

What adjusted figure should included in the financial statements forinventories at 31 December 20X4:

A business has opening inventory of 8,100$ and closing inventory of 9,200$

Purchases 87,600$ and delivery inwards 60$ and outwards 190$ What is thecorrect amount for cost of sales?

At 30 September eoX4 the closing inventory of a company amount to 497.500$.

The following items were included in this total at cost:

1 1000 items which had cost 20 each These items were all sold in October20X4 for 17$ each, with selling expenses of 900$

2 Five items which had been in inventory for many years and which hadbeen purchased for 100$ each, sold in October 20X4 for 1000$ each, net of sellingexpenses

What figure should appear in the company’s statement of financial position at 30September 20X4 for inventory?

Purchases (net of sales tax): $ 65.000Sales tax is charged at a flat rate of 15% Eva Co’s sales tax account showed anopening credit balance of $4.500 at the beginning of the month and a closing debitbalance of $2.700 at the end of the month What was the total sales tax paid toregulatory authorities during the month of March 20X3?

A Dr Purchases $400, Dr Sales tax $75, Cr Payables $475

B Dr Purchases $475, Dr Sales tax $75, Cr Payables $400

C Dr Purchases $475, Cr Payables $475

Question 23

Indicate whether the following statements are true or false

A van for sale by a dealer is shown as a non-current asset in its statement offinancial position

A Delivery inwards

B Delivery outwards

C Depreciation of delivery vehicles

D Finished goods storage costs

E Production line wages

Question 25

The gross profit margin is 20% where:

A cost of sales is $100,000 and sales are $120,000

B cost of sales is $100,000 and sales are $125,000

C cost of sales is $80,000 and gross profit is $16,000

D cost of sales is $80,000 and sales are $96,000

What will be the effect of this error if it remains uncorrected?

A The current year's profit will be overstated and next year's profit will beunderstated

B The current year's profit will be understated but there will be no effect on nextyear's profit

C The current year's profit will be understated and next year's profit will beoverstated

D The current year's profit will be overstated but there will be no effect on nextyear's profit

Basic(200 units)Price $ per unit

Super(250 units)Price $ per unit

Luxury(150 units)Price $ per unit

Revenue 115,200Opening inventory 21,000

Purchases 80,000Closing inventory (5,000)

(96,000)19,200What mark-up has the business applied?

-> AVCO value of inventory = 30,83 x ( 30 + 50 -60 + 40 ) = $1850

Question 2: D

Average price = ( 10 x 200 + 12 x220 + 5 x 180 ) : ( 10 + 12 + 5 ) = $205.19 -> AVCO value of inventory = 205,19 x ( 10 + 12 - 8 + 5 + 10 ) = $1846.67

Question 3: C

Inventory count value 724,800Less: purchases(9,200)

Add: sales (18,000 × 70/100) 12,600Add: goods returned 600Inventory 728,800

Question 4: A

Sales: 130000 x (20% /120%) = 21666

 Tax: 21666Purchase: 85000 x 20%= 170000Total sale tax = 21666 + 21666 – 17000 = 26332

Opening inventory (AVCO method) 66200

Question 10:

Có hai phương pháp tính

1 Cách thứ nhất:

Number of units in ending inventory:

Ending inventory = Beginning inventory + Purchases made during the month –Units sold during the month = 500 units + (800 + 700) units – 1,400 units = 600units

a Computation of inventory on July 31, 2016 ( i, e., ending inventory) under FIFO:

Most recent cost; July 25,2016: 600 units @ $26 per unit = $15,600

b Computation of cost of goods sold (COGS) for July 31, 2016 under FIFO:

Cost of units on July 1, 2016 (beginning inventory): 500 units @ $20 per unit =

$10,000

Add cost of units purchased during the month:

800 units purchased @ $24 per unit = $19,200

700 units purchased @ $26 per unit = $ 18,200Total cost of units available for sale = $10,000 + 19,200 + 18,200 = $47,400Total cost of 1,400 units sold during July = Total cost of units available for sale -Cost of units in ending inventory (part 1) = $47,400 - 15,600 = $31,800

2 Cách thứ hai, chúng ta có thể tính chi phí hàng bán theo earliest method như sau:

Earliest cost; July 01, 2016: 500 units @ $20.00 per unit = $10,000Next earliest cost; July 18, 2016: 800 units @ $24.00 per unit = $19,200Next earliest cost; July 25, 2016: 100 units @ $26.00 per unit = $2,600Total cost of 1,400 units sold during July = $10,000 + 19,200 + 2,600 = $31,800

Question 11: D

$

1 Original value 300,700

b, NRV ($40 * 95%) * 400 15,200

3 Inventory value (1) - (2a) + (2b) 295,900

Question 12: B

Opening inventory 160 Net purchases 1140

Closing inventory (75)

Cost of sales 1225 Question 13: A Opening inventory 6700

Add purchases 84000

Less closing inventory (5500)

Cost of sales 85200

 Gross profit = 20% x 85200 = 17040

Question 14: B

Product A= 3500×10 + 500×6= 38000

Product B= 800×6 + 200×2.50= 5300

Question 15: C

Opening Inventory (AVCO method) 55000Purchases 140300Less closing inventory (60200)Cost of materials 135100

Question 16: D

Question 17: A

Question 18: B

$Inventory count value 725,100Less purchases (7,500)Add sales (13.000 x 70/100) 9.100Add goods returned 600Inventory figure 727,300

Question 19: D $

Opening inventory 8.100Purchases 87.600Delivery inwards 60Less closing inventory 9.200

86.560

Question 20: D

$ $Original balance 497.500Item (1) cost (20.000)NRV 17000-900 16.100Write down

Inventory value

3.900493.600

Question 21: C

Purchase: 65.000 × 15% = 9750Cash: 13.075 22.825

b/d 4.500Sales: 120.000×15%/115%= 15.625c/d 2.700 22.825

 The total sales tax paid to regulatory authorities during the month ofMarch 20X3 is 13.075

Question 22: C

Dr Purchases $475

Cr Payables $475Cannot reclaim the input sales tax of $75 because Alan is not registered for sales tax purposes

Question 23: B

If prices are rising, the charge to cost of sales will be higher if AVCO is used

Question 24: A, E

Cause B,C is distribution cost

D is not incurred in cost of finished good