a. Complete the stock card in the pro forma book provided using the Moving Weighted Average method
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a. Complete the stock card in the pro forma book provided using the Moving Weighted Average method of inventory valuation and then calculate the gross profit.
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Con has been reviewing his inventory and is keen to gain better control over his inventory. To get him started he wants to understand the best ways to record information about the Landscaping Rocks he sells as well as the Timber Beams he supplies for house frame constructions. Con has provided information for each item over the last three months. Date July 1 17 August 4 12 15 28 Sept 3 Date 8 15 July 6 12 21 August 9 18 25 28 Sept 6 8 Landscaping Rocks-July-September Opening Balance on July 1-10 tonnes valued at $1150 Selling Price - $180 per tonne Purchases 20 tonnes @ $130 per tonne 11 tonnes @ $128 per tonne Returned 6 tonnes from August 12 purchase (rocks were damaged when delivered) Purchases 200 beams @ $10 each Sales 130 beams @ $11 each 6 tonnes 5 tonnes 12 tonnes @ $130 per tonne A stocktake on September indicated 20 tonnes on hand 200 beams @ $12 each 9 tonnes 3 tonnes Timber Beams -July-September Opening Balance on July 1-50 beams valued at $600 Selling Price - $22 per beam 4 tonnes Sales 80 beams 150 beams 150 beams 50 beams returned (wood was warped and unusable) 100 beams Returned 50 beams from July 21 purchase (warped beams) A stocktake on September 30 indicated 90 beams on hand Con has pointed out that whenever possible he makes sure to sell the oldest timber beams first to make sure they are not exposed to the elements and potential damage for longer than necessary. Con has been reviewing his inventory and is keen to gain better control over his inventory. To get him started he wants to understand the best ways to record information about the Landscaping Rocks he sells as well as the Timber Beams he supplies for house frame constructions. Con has provided information for each item over the last three months. Date July 1 17 August 4 12 15 28 Sept 3 Date 8 15 July 6 12 21 August 9 18 25 28 Sept 6 8 Landscaping Rocks-July-September Opening Balance on July 1-10 tonnes valued at $1150 Selling Price - $180 per tonne Purchases 20 tonnes @ $130 per tonne 11 tonnes @ $128 per tonne Returned 6 tonnes from August 12 purchase (rocks were damaged when delivered) Purchases 200 beams @ $10 each Sales 130 beams @ $11 each 6 tonnes 5 tonnes 12 tonnes @ $130 per tonne A stocktake on September indicated 20 tonnes on hand 200 beams @ $12 each 9 tonnes 3 tonnes Timber Beams -July-September Opening Balance on July 1-50 beams valued at $600 Selling Price - $22 per beam 4 tonnes Sales 80 beams 150 beams 150 beams 50 beams returned (wood was warped and unusable) 100 beams Returned 50 beams from July 21 purchase (warped beams) A stocktake on September 30 indicated 90 beams on hand Con has pointed out that whenever possible he makes sure to sell the oldest timber beams first to make sure they are not exposed to the elements and potential damage for longer than necessary.
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Answer Landscaping Rocks Stock Card Date Description Receipts Tonnes Issues Tonnes Balance T... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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