Clyde Wishbone breeds and sells sheep. During the 2017/18 year records disclosed the following: Quantity Value ($)
Question:
Clyde Wishbone breeds and sells sheep. During the 2017/18 year records disclosed the following:
Quantity | Value ($) | |
Sheep on Hand – 30 June 2017 | 8,200 | 47,900 |
Purchases | 500 | 9,200 |
Natural Increase | 2,900 | |
Sales | 4,300 | 92,400 |
Rations | 100 | |
Deaths | 300 |
Clyde chooses to use the prescribed value for natural increase and average cost for rations and closing stock.
Required:
Prepare the average cost calculations and the trading account for the 2017/18 tax year.
Average Cost Calculations | ||
Qty. of Sheep | $ | |
Opening Stock | $ | |
Purchases | $ | |
Natural Increase @ Prescribed Value | $ | |
Total | $ | |
Average Cost of One Sheep | $ | |
Average Cost of Rations | Qty Sheep for Rations | $ |
Average Cost of Closing Stock | Qty Sheep at Closing Stock | $ |
Sheep Trading Account | |||||
Qty. | $ | Qty. | $ | ||
Opening Stock | Sales | ||||
Purchases | Rations | ||||
Natural Increase | Deaths | ||||
Gross Profit | Closing Stock |
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott