Reference no: EM13922198
Briefly explain the following terms as used in accounting for returnable containers:
(i) charge-out price
(ii) Credit-back price
Jiko Ltd. supplies cooking gas in 10 kilogramme cylinders which are returnable after use. The cylinders are purchased at Sh. 500 each and are valued at Sh. 400 for stocktaking purposes.
On issue of the cylinders to customers, a deposit of Sh.600 is paid per cylinder of which Sh.520 is refunded to customers on return of a cylinder within a period of three months.
On 1 January 2002, there were 2,000 cylinders in the company's warehouse and 8,000 cylinders in the hands of customers in respect of which the return period had not expired.
During the year ended 31 December 2002, the company purchased 6,000 new cylinders at the normal purchase price but returned 200 cylinders to the supplier due to defects detected on inspection. A credit of Sh. 100,000 was given by the supplier for the returned cylinders. For the year ended 31 December 2002, customers were issued with 72,000 cylinders and they returned 68,000 cylinders. As at 31 December 2002, the customers held 10,000 cylinders which had been issued within the previous three months.
For safety purposes the cylinder returned by customers were thoroughly inspected and repaired for any damages or defects. On average, Sh. 40 was spent as inspection and repair costs per cylinder returned by a customer.
Due to wear and tear: 250 cylinders were confirmed to be unsafe for use. These were sold to a crap metal dealer at Sh. 180 each.
On 31 December 2002, stocktaking revealed that there were only 3,500 cylinders in the warehouse. The deficit was treated as a loss.
Required:
i) Containers stock account as at 31 December 2002.
(ii) Containers suspense account as at 31 December 2002.
(iii) Containers profit and loss account for the year ended 31 December 2002
|
Harper company
: For 2013, Harper Company sold 93,000 units at a selling price of $21 per unit. Variable cost per unit was $15, and Harper's net income for the year was $53,000. What was the amount of Harper's fixed costs.
|
|
Counting without counting
: Let me tell you a little dirty secret about the mutual dislike between mathematicians and physicists. It can escalate into a full blown war if diplomacy is not attempted properly.
|
|
The company''s total fixed cost amount
: Perez Company's break-even point is 13,000 units. Its product sells for $28 and has a $13 variable cost per unit. What is the company's total fixed cost amount.
|
|
Firms revenues and net incomes are projected to grow
: Assume a firm’s revenues and net incomes are projected to grow by 10% per year into the foreseeable future. What terminal value growth rate is most appropriate for the free cash flow valuation model when WACC is 11%?
|
|
Find containers stock account as at 31 december 2002
: Briefly explain the following terms as used in accounting for returnable containers: charge-out price, Credit-back price
|
|
What is amount to use as the annual sales figure
: Winnebagel Corp. currently sells 28328 motor homes per year at $65824 each, and 11079 luxury motor coaches per year at $104355 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 21673 of these ca..
|
|
Sales representative be articulate, sophisticated
: Your job is to hire a sales manager to sell your latest fiber optics to leading wireless manufacturers of five key companies. This job requires that the sales representative be articulate, sophisticated, and knowledgeable about fiber optics. The j..
|
|
Explain the practice of fasting during the month of ramadan
: The Islamic vision of the good life requires that, Islamic law dictates that a man may marry as many as four wives, on the condition that and Explain the practice of fasting during the month of Ramadan
|
|
Implications for supply chain design
: Compare and contrast the implications for supply chain design for these two retail systems.
|