P4-2 Baha A.. had the following results in September 20X1. Account TL Account TL Freight-in 5.000...

   

 

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P4-2 Baha A.Ş. had the following results in September 20X1. Account TL Account TL Freight-in 5.000 Freight-out 3.500 Sales Returns and Allowances 6.500 Purchase Returns and Allowances 3.000 Purchases 100.000 Sales 156.000 Purchase Discounts 1.500 Sales Discounts 4.000 Interest Expense 2.000 Insurance Expense 6.000 Rent Expense 10.000 Salary Expense 30.500 29.1 From the following figures calculate the closing stock in trade that would be shown using S FIFO, ) LIFO, (IH) AVCO methods. Bought Sold March 100 at £16 each 220 at £19 each December 130 for £24 each September 29.2 For question 29.1 draw up the trading account for the year showing the gross profits that would have been reported using () FIFO, (i) LIFO, (II) AVCO methods. f29.3A prom the following figures calculate the closing stock-in-trade that would be shown using D FIFO ) LIFO, (HI) AVCO methods on a perpetual inventory basis. Bought Sold January April October 120 at E16 each June 125 at £22 each 210 at £25 each 80 at £18 each November 150 at £19 each 29.4A Draw up trading accounts using each of the three methods from the details in question 29.3A. 29.5 The sixth formers at the Broadway School run a tuck shop business. They began trading on 1 December 20X9 and sell two types of chocolate bar, 'Break' and 'Brunch'. Their starting capital was a £200 loan from the School Fund. Transactions are for cash only. Each Break costs the sixth form 16p and each Brunch costs 12p. 25% is added to the cost to determine the selling price. Transactions during December are summarised as follows: December 6 Bought 5 boxes, each containing 48 bars, of Break; and 3 boxes, each containing 36 bars of Brunch. December 20 The month's sales amounted to 200 Breaks and 90 Brunches. (a) Record the above transactions in the cash, purchases and sales accounts. All calculations must be shown. (b) On 20 December (the final day of term) a physical stocktaking showed 34 Break and 15 Brunch in stock. Using these figures calculate the value of the closing stock, and enter the amount in the stock account. (c) Prepare a trading account for the tuck shop, calculating the gross profit/loss for the month of December 20X9. (d) Calculate the number of each item that should have been in stock. Explain why this informa- tion should be a cause for concern. (Edexcel, London Examinations: GCSE) P4-2 Baha A.Ş. had the following results in September 20X1. Account TL Account TL Freight-in 5.000 Freight-out 3.500 Sales Returns and Allowances 6.500 Purchase Returns and Allowances 3.000 Purchases 100.000 Sales 156.000 Purchase Discounts 1.500 Sales Discounts 4.000 Interest Expense 2.000 Insurance Expense 6.000 Rent Expense 10.000 Salary Expense 30.500 29.1 From the following figures calculate the closing stock in trade that would be shown using S FIFO, ) LIFO, (IH) AVCO methods. Bought Sold March 100 at £16 each 220 at £19 each December 130 for £24 each September 29.2 For question 29.1 draw up the trading account for the year showing the gross profits that would have been reported using () FIFO, (i) LIFO, (II) AVCO methods. f29.3A prom the following figures calculate the closing stock-in-trade that would be shown using D FIFO ) LIFO, (HI) AVCO methods on a perpetual inventory basis. Bought Sold January April October 120 at E16 each June 125 at £22 each 210 at £25 each 80 at £18 each November 150 at £19 each 29.4A Draw up trading accounts using each of the three methods from the details in question 29.3A. 29.5 The sixth formers at the Broadway School run a tuck shop business. They began trading on 1 December 20X9 and sell two types of chocolate bar, 'Break' and 'Brunch'. Their starting capital was a £200 loan from the School Fund. Transactions are for cash only. Each Break costs the sixth form 16p and each Brunch costs 12p. 25% is added to the cost to determine the selling price. Transactions during December are summarised as follows: December 6 Bought 5 boxes, each containing 48 bars, of Break; and 3 boxes, each containing 36 bars of Brunch. December 20 The month's sales amounted to 200 Breaks and 90 Brunches. (a) Record the above transactions in the cash, purchases and sales accounts. All calculations must be shown. (b) On 20 December (the final day of term) a physical stocktaking showed 34 Break and 15 Brunch in stock. Using these figures calculate the value of the closing stock, and enter the amount in the stock account. (c) Prepare a trading account for the tuck shop, calculating the gross profit/loss for the month of December 20X9. (d) Calculate the number of each item that should have been in stock. Explain why this informa- tion should be a cause for concern. (Edexcel, London Examinations: GCSE)

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Solution Closing inventory 12080150 125 210 15 1 FIFO Method Closing I... View the full answer