ILLUSTRATION 4 The following details are available relating to a consignment of 1,200 Kgs. Of material...

 

Transcribed Image Text:

ILLUSTRATION 4 The following details are available relating to a consignment of 1,200 Kgs. Of material X despatched by the supplier on an order : (a) Basic Invoice price = $ 20 per kg. (without considering trade discount) (b) GST = 8% of invoice price (c) Trade Discount 10% on invoice price (d) Insurance 1,000 (e) Delivery charges = $ 250 (f) Cost of containers: $600 per container, Each container holds 50 kg. of material. When containers are returned within 6 weeks, rebate allowed is $400 per container. Containers are normally returned on time. There is no GST, discount, insurance or delivery charge applicable to the containers. Material X is supplied in containers. Container Costs are paid separately. (g) Two containers were lost in transit. This is considered abnormal. (h) One container of material was rejected after receipt, on inspection and discarded along with the material (considered normal). (i) Three containers were damaged in transit/loading/unloading before they reached the stores. No material was usable from these. This is a normal loss in every consignment of 24 containers. Present a statement showing the item-wise treatment of the above, stating your remarks for each, in accordance with CAS for material cost and arrive at the final cost ($/kg.) of the material to be used to record the value of receipts in the stores ledger. ILLUSTRATION 4 The following details are available relating to a consignment of 1,200 Kgs. Of material X despatched by the supplier on an order : (a) Basic Invoice price = $ 20 per kg. (without considering trade discount) (b) GST = 8% of invoice price (c) Trade Discount 10% on invoice price (d) Insurance 1,000 (e) Delivery charges = $ 250 (f) Cost of containers: $600 per container, Each container holds 50 kg. of material. When containers are returned within 6 weeks, rebate allowed is $400 per container. Containers are normally returned on time. There is no GST, discount, insurance or delivery charge applicable to the containers. Material X is supplied in containers. Container Costs are paid separately. (g) Two containers were lost in transit. This is considered abnormal. (h) One container of material was rejected after receipt, on inspection and discarded along with the material (considered normal). (i) Three containers were damaged in transit/loading/unloading before they reached the stores. No material was usable from these. This is a normal loss in every consignment of 24 containers. Present a statement showing the item-wise treatment of the above, stating your remarks for each, in accordance with CAS for material cost and arrive at the final cost ($/kg.) of the material to be used to record the value of receipts in the stores ledger.

Answer rating: 100% (QA)

Answer Please like the answer and keep supporting Thank you Kg 1200 Details I... View the full answer