1/6 Opening balance: 400 units on hand @ $25.00 per unit. 6/6 Purchase on credit of...

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1/6 Opening balance: 400 units on hand @ $25.00 per unit. 6/6 Purchase on credit of 200 units @ $26.00 per unit; total cost $5,200. 7/6 Sale of 170 units. 9/6 Returned to the supplier for credit 20 units (originally purchased on 6/6). 17/6 Sale of 130 units. 23/6 Purchase on credit of 120 units @ $27.00 per unit; total cost $3,240. 28/6 Sale of 160 units. 30/6 Customer returned 10 units in good condition (originally sold on 17/6). 30/6 Stocktake reveals 235 units on hand. This gives rise to a stock variance when compared to the stock card balance. Date Details (if any) Qty Unit Value Qty Unit Value Qty Unit Cost ($) Cost (S) Cost ($) ($) ($) Value ($) 1/6 Opening balance 400 25.00 10,000 6/6 Purchase on CR 200 26.00 5,200 600 25.33 15,200 7/6 Sale 170 25.33 4,306.10 430 25.33 10,891.90 9/6 Returned to supplier -20 26.00 -520 410 25.30 10,371.90 17/6 Sale 130 25.30 3,289 280 25.30 7,084 23/6 Purchase on CR 120 27.00 3,240 400 25.81 10,324 28/6 Sale 160 25.81 4,129,60 240 25.81 6,194,40 30/6 Customer Return -10 25.30 -253 250 25.79 6,447.50 TOTAL 300 7,920 450 11,471.70 30/6 Inventory Adjust b (ii) Provide journal entries for Cost of Goods Sold and for inventory variance: Date 30/6 Particulars Costs of Goods Sold Inventory Control Cost of Goods Sold for June 30/06 Inventory Control Inventory Loss Inventory Variance for June Debit Credit 1/6 Opening balance: 400 units on hand @ $25.00 per unit. 6/6 Purchase on credit of 200 units @ $26.00 per unit; total cost $5,200. 7/6 Sale of 170 units. 9/6 Returned to the supplier for credit 20 units (originally purchased on 6/6). 17/6 Sale of 130 units. 23/6 Purchase on credit of 120 units @ $27.00 per unit; total cost $3,240. 28/6 Sale of 160 units. 30/6 Customer returned 10 units in good condition (originally sold on 17/6). 30/6 Stocktake reveals 235 units on hand. This gives rise to a stock variance when compared to the stock card balance. Date Details (if any) Qty Unit Value Qty Unit Value Qty Unit Cost ($) Cost (S) Cost ($) ($) ($) Value ($) 1/6 Opening balance 400 25.00 10,000 6/6 Purchase on CR 200 26.00 5,200 600 25.33 15,200 7/6 Sale 170 25.33 4,306.10 430 25.33 10,891.90 9/6 Returned to supplier -20 26.00 -520 410 25.30 10,371.90 17/6 Sale 130 25.30 3,289 280 25.30 7,084 23/6 Purchase on CR 120 27.00 3,240 400 25.81 10,324 28/6 Sale 160 25.81 4,129,60 240 25.81 6,194,40 30/6 Customer Return -10 25.30 -253 250 25.79 6,447.50 TOTAL 300 7,920 450 11,471.70 30/6 Inventory Adjust b (ii) Provide journal entries for Cost of Goods Sold and for inventory variance: Date 30/6 Particulars Costs of Goods Sold Inventory Control Cost of Goods Sold for June 30/06 Inventory Control Inventory Loss Inventory Variance for June Debit Credit

Answer rating: 100% (QA)

Answer To calculate the Cost of Goods Sold COGS and inventory variance we need to first determine th... View the full answer