Inventory 2 x 20 40 gst paid 4 returned 2 calculators

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Inventory (2 x $20)40GST Paid4(Returned 2 calculators - credit given)12 Sept.Accounts Receivable (26 x $33)858Sales780GST Collected78Cost of Sales (26 x $20)520Inventory520(Sold 26 calculators)14 Sept.Sales Returns and Allowances30GST Collected3Accounts Receivable33Inventory20Cost of Sales20(1 calculator was returned into stock)20 Sept.Accounts Receivable (30 x $33)990Sales900GST Collected90Cost of Sales [(5 x $20) + (25 x $20)] *600Inventory600(Sold 30 calculators to Mega Ltd)*Note: Better Office Supplies uses the FIFO inventory cost flow assumption, which meansthat inventory purchased earlier will be sold first. On 1st September, Better OfficeSupplies had 30 calculators on stock @ $20 each. The first 26 calculators were soldto Reader Book Store on 12th September, so there were only 4 calculators left @$20. But 1 Calculator was returned from Reader Book Store on 14 September. Sowhen Better Office Supplies sold 30 calculators to Mega Ltd on 20th September, 5calculators from old stock @ $20 each were sold first, and the remaining 25calculators were taken from the new stock purchased on 6th September also @ $20each.
PSB5.5This information is available for the Automotive and Electronics Divisions of PrestigeMotors Ltd for 2018. Prestige Motors uses the FIFO inventory method.(IN MILLIONS)2018 Beginning inventory$36 306Ending inventory36 621Current assets133 089Current liabilities143 418Cost of sales353 919Sales421 299Requireda.Calculate inventory turnover, days in inventory, and current ratio for Prestige MotorsLtd for 2018.b.If a company has a low inventory turnover or high days in inventory, is it consideredto be a good or bad sign for the entity’s shareholders? Explain your answer.Determine ending inventory under a perpetual inventory system.SOLUTION PROBLEM SET B 5.5
PSB5.10Plant Food Ltd in Auckland manufactures and sells a full line of equipment that isused to apply fertiliser. Many of these systems are computer-controlled. Thisinformation is available for Make-it-Grow for 2018. Plant Food uses the LIFOinventory cost flow method.(IN THOUSANDS)2018Beginning inventory (finished goods)$99 894Ending inventory (finished goods)101 751Current assets134 045Current liabilities57 871Cost of sales234 959Sales322 122Required1.Calculate inventory turnover, days in inventory and current ratio for Plant Food Ltd.

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