Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Surplus Stores Ltd is a company which frequently buy goods in large quantities and makes alterations to the goods before selling. At 31 Dec 2000 the following items were included in stock:
(1) 8000 pairs of rubber boots. These had cost $6.50 per pair. In order to make them saleable Surplus Stores Ltd will buy linings at a cost of $1.20 per pair. These linings have not yet been delivered or paid for. The labour cost of fitting linings to boots will total $500. The expected selling price is $9.95 per pair.
(2) 100 pairs of fire damaged shoes. These cost $3000 in total. 200 pairs are so badly damaged that they will be destroyed. The remaining 800 pairs will need cleaning and polishing at a total cost of $960. This work has not yet been done. It is expected that the shoes will sell for $7.49 per pair.
(3) 40 large tents which were purchased for $150 each. After inspection the company estimated that repairs to the tents will cost a total of $250. These repairs will take 2 months and the company estimates the storage costs will amount to $1 per tent per month. The company is expecting to sell the tents for $180 each but expects to give a trade discount of 5% on half the tents and pay carriage of $4 per tent on 40% of the tents.
(4) 500 jackets in a now unfashionable style. Surplus Stores Ltd paid $8 for each jacket but is offering to sell them at $10 each. The company expects to sell 200 at this price with the remainder being sold off at $9 each. For all jacket sales they will have to pay packing and carriage of $1.50 per jacket.
(5) 20 cameras which were bought for a total cost of $1240. The company has decided to include a case, costing $2.50 and additional equipment, costing $6 with each camera which will then retail at $89. The cases and additional equipment have yet to be acquired.
REQUIRED:
Calculate the total and the total net realizable value for each of the above items at 31 Dec 2000.
Mrs. M. Botham is a sole trader, selling a variety of fashionable clothing materials. Her business year end is 31 December 2011. You have been given the following trial balance
STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation
Savage Distribution markets CDs of performing artist Little Sister. At the beginning of October, Savage had in beginning inventory 1,200 Little Sister's CDs with a unit cost of $5
There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investin
Generally Accepted Accounting Principles (GAAP) -Rules, conventions and procedures essential to define accepted accounting practice at a specific time. The highest level of such pr
Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sa
The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) m
Prime Essentials Limited is a small private corporation. The owner plans to approach the bank for an additional loan or a line of credit to facilitate expansion. The company bookke
One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it
Capital Expenditure Budget This represents the expenditure on all fixed assets throughout the budget period. Addition intended to profit future accounting periods, or expend
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd