Brightlights Pty Umited commenced operation as a manufacturer of lights on 1 July 2018. The company...

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Brightlights Pty Umited commenced operation as a manufacturer of lights on 1 July 2018. The company has made 100.cg standard lights during the year ended 30 June 2019. The company han inccured the following costs during the year ending 30 June 2019 Income and outgoings Amounts Sales -97 000 e $10 per unit $970 000 Raw materials purchased Raw materials consumed 200 000 180 000 Direct labour Factory overheads. Storage costs Sales expenses Administration expenses 210 000 110 000 120 000 125 000 150 000 Reguired Calkulate the value of closing stock using the cost price method for the year ending 30 June 2019. (10 Marks) Estimate taxable income of the company for the year ending 30 June 2019 showing in detal what is to be included in assessable income and in allowable deduction as per the requirements of current Australian Income Tax Law. [5 Marks Assume there is a down turn in consumer demand resulting in a market price of company's standard lights below its cost price, market seling value or replacement price, explain how the company might valae its closing stock as at 30 June 2019 and what action it must take. (S Marks Answers: Brightlights Pty Umited commenced operation as a manufacturer of lights on 1 July 2018. The company has made 100.cg standard lights during the year ended 30 June 2019. The company han inccured the following costs during the year ending 30 June 2019 Income and outgoings Amounts Sales -97 000 e $10 per unit $970 000 Raw materials purchased Raw materials consumed 200 000 180 000 Direct labour Factory overheads. Storage costs Sales expenses Administration expenses 210 000 110 000 120 000 125 000 150 000 Reguired Calkulate the value of closing stock using the cost price method for the year ending 30 June 2019. (10 Marks) Estimate taxable income of the company for the year ending 30 June 2019 showing in detal what is to be included in assessable income and in allowable deduction as per the requirements of current Australian Income Tax Law. [5 Marks Assume there is a down turn in consumer demand resulting in a market price of company's standard lights below its cost price, market seling value or replacement price, explain how the company might valae its closing stock as at 30 June 2019 and what action it must take. (S Marks Answers:

Answer rating: 100% (QA)

a First we calculate closing stock opening stock produced during the period sale here there is no opening stock so avoid it so here Closing stock 1000... View the full answer