(4marks) (a) Briefly explain four factors which affect inventory valuation system (b) A wholesaler had opening...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(4marks) (a) Briefly explain four factors which affect inventory valuation system (b) A wholesaler had opening inventory of 600 units of product C valued at K50 per unit at the beginning of May. The following receipts and sales were recorded during May. Date 2 May 12 May 21 Мay 29 Мay Receipts 800 Issues 500 400 150 The purchase cost of receipts was K51.50 per unit. Using a weighted average method of valuation, calculate the value of closing inventory at the end of May. (6 marks) (c) My choice a wholesaler based in Kabwe had the following receipts and issues during Мay. Receipts units Issues units K/unit 4 May 900 30 6 May 500 13 Мay 700 35 14 May 400 23 May 650 50 25 May 400 29 May 500 2.250 1.800 Calculate the value of closing inventory at the end of May using the periodic weighted average. (d) What are the challenges of using the AVCO inventory system ( 3marks) (4marks) (a) Briefly explain four factors which affect inventory valuation system (b) A wholesaler had opening inventory of 600 units of product C valued at K50 per unit at the beginning of May. The following receipts and sales were recorded during May. Date 2 May 12 May 21 Мay 29 Мay Receipts 800 Issues 500 400 150 The purchase cost of receipts was K51.50 per unit. Using a weighted average method of valuation, calculate the value of closing inventory at the end of May. (6 marks) (c) My choice a wholesaler based in Kabwe had the following receipts and issues during Мay. Receipts units Issues units K/unit 4 May 900 30 6 May 500 13 Мay 700 35 14 May 400 23 May 650 50 25 May 400 29 May 500 2.250 1.800 Calculate the value of closing inventory at the end of May using the periodic weighted average. (d) What are the challenges of using the AVCO inventory system ( 3marks)
Expert Answer:
Answer rating: 100% (QA)
a There Are Four Factors Affecting Inventory Valuation System Are As Follows 1 Financia... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Using the weighted average method of perpetual inventory costing and the information presented in E, compute the cost of materials used and the cost of the July 31 inventory. (Round unit prices to...
-
Redo Problem 11.6 using the weighted average method [Eq. (11.68)] to calculate the stress increase in the clay layer. In problem 11.6 Refer to Figure 11.43. Considering the soil to be a uniform clay...
-
Units Unit Cost January 1 2016 beginning inventory2800 800 Purchases January 6 20163500 900 January 25 20163200 950 February 17 20162600 1000 March 27 20162900 1050 A physical inventory on March 31...
-
A 200 g mass attached to a horizontal spring oscillates at a frequency of 1.5 Hz. At one instant, the mass is at x = 70 mm and has vx = -0.2 m/s. Determine (a) The period (b) The amplitude (c) The...
-
Skye asks Jim to buy a textbook for her at the County Community College campus bookstore. Skye writes a check payable to the bookstore and leaves the amount blank for Jim to fill in the price of the...
-
If x is normally distributed with = 25.0 and = 5.0, determine the following: a. P(x 25.0) b. P(20.0 x 30.0) c. P(x 30) d. P(x = 26.2) e. P(15.0 x 25.0) f. P(x 15)
-
Mel's Accessories sells wallets and money clips. Historically, the firm's sales have averaged three wallets for every money clip. Each wallet has an \(\$ 8\) contribution margin, and each money clip...
-
1. Based on Madelines Day 1 observations and conversation with Mr. Spencer, provide examples of the service quality gaps (e.g., knowledge, standards, delivery, communications, and service) that are...
-
Skolits Corporation has a cost of equity of 1 1 . 2 percent and an aftertax cost of debt of 4 . 6 2 percent. The company's balance sheet lists long - term debt of $ 3 7 0 , 0 0 0 and equity of $ 6 3...
-
3 Consider the following possible alternatives to the vector norms we encountered in the notes. For each, state whether the proposed definition satisfies the conditions of a norm or not. If it does,...
-
Discuss the role of big data analytics in Precision Medicine.
-
What are the main consolidation approaches?
-
Should public sector organizations work more on the principle of trust?
-
Who are the main internal and external users of CFSs?
-
What roles can a performance auditor adopt and what conflicts can arise between these roles?
-
What are the potential financial costs and risks of adopting 5G too early? What about the risks of adopting it too late?
-
In December of 2017, the U.S. Congress passed the Tax Cuts and Jobs Act of 2017 (TCJA), which reduced the personal income tax rates for most earners. The old tax rates and the new tax rates are...
-
Why do markets typically lead to an efficient outcome for buyers and sellers?
-
Distinguish between perfection and practical standards. Which type of standard is likely to produce the best motivational effects?
-
Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the...
-
College Pak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were...
-
For each of the following organizational units, indicate whether the unit would most likely be classified as a cost center \((C)\), a revenue center \((R)\), a profit center \((P)\), or an investment...
-
Premiere Produce Inc. summarized the following results for its most recent fiscal year: Based on the sales information, compute the company's sales price variance and sales volume variance. Budgeted...
-
Management at Consulting Inc. has decided to allocate costs of the company's two support departments (administration and information technology) to the two revenue-generating consulting departments...
Study smarter with the SolutionInn App