Thảo luận nhóm TMU FINANCIAL ACCOUNTING 1

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 6

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

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 unit

Under AVCO, what is the value of inventory held for item X at the end of June 30?

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 unit

The firm uses periodic weights average cost to value its inventory What is theinventory value at the end of the year?

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

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

Sale (including tax) $160000

Purchase (net of sales tax) $85000

Sale 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 total

inventory value of $960000 Between 30 June and 7 July 20X6, the followingtransactions took place.

Sale of goods (mark-up on cost at 15%) $14000

Goods returned ny Global Inc to supplier $1550

What 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, openinginventory 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?

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

A trader starts in business and by the end of his first year he has purchased goodscosting $21,000 and has made sales totaling $25,000 Goods which cost him

$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?

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

Buildings accumulated depreciation at 1 November 20X6 60

Plant accumulated depreciation at 1 November 20X6 110

Allowance for receivables at 1 November 20X6 10

Closing inventory has been counted and is valued at $75

Ignoring the depreciation charge calculated earlier, what is the cost of sales for theyear?

At the year end she had $5400 left in inventory All sales are made at a mark up oncost of 20%.

What is Prisha's gross profit for the year?

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?

A. 38000

B. 43300

C. 42800

D. 38500

Question 15

A company has decided to switch from using the FIFO method of inventoryvaluation to using the average cost method (AVCO)

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?

B The cost of inventories of finished goods may include labour and materials costonly, without including overheads

C Inventories should be included at the lowest of cost, net realisable value andreplacement cost

D It may be acceptable for the cost of inventories to be based on selling price lessestimated profit margin

Question 17

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

Question 18

The cost of inventory in the financial statement of Q for the year ended 31December 20X5 of 725.100 was based on an inventory count on 4 January 20X6.

Between 31 December 20X5 and 4 January 20X6, the following transactiontook place:

Sales of goods (profit margin 30% on

sales)

13.000$

Goods returned by Q to a supplier 600$

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

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

A $363,600

B $390,500

C $393,600

D $493,600

Question 21

The following information relates to Eva Co’s sales tax for the month of March20X3

Sales (including sales tax): $120.000

Purchases (net of sales tax): $ 65.000

Sales 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?

value was therefore $475 What is the correct entry to be made in Alan’s generalledger in respect of the invoice?

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

D Dr Purchases $400, Cr Payables $400

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

Question 28

Indicate whether the following statements are true or false

Import duties are included in the cost of inventory.

Super(250 units)Price $ per unit

Luxury(150 units)

Price $ per unit

Selling and distribution costs to

Average price = ( 30 x 40 + 50 x30 + 40 x 25 ) : ( 30 + 50 + 40 ) = $30,83 -> 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

Opening inventory (AVCO method) 66200

Gross profit is thus:

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 = $ 18,200

Total cost of units available for sale = $10,000 + 19,200 + 18,200 = $47,400

Total 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 = $10,000

Next earliest cost; July 18, 2016: 800 units @ $24.00 per unit = $19,200

Next earliest cost; July 25, 2016: 100 units @ $26.00 per unit = $2,600

Total cost of 1,400 units sold during July = $10,000 + 19,200 + 2,600 = $31,800

Question 11: D

$

1 Original value 300,700

2 Hats a, Cost 400 * $50 (20,000)

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

Cash: 13.075

22.825

c/d 2.700 22.825

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

Cause B,C is distribution cost

D is not incurred in cost of finished good

Question 25: B

125,000 x 80% = 100,000

Question 26: C

Question 27: C

This year: Closing inventory lower => COGS higher => Gross profit lower

Next year: Closing inventory the past year is Opening Inventory this year => Grossprofit higher

Question 30: C

19,200 / 96,000 x 100% = 20%