The storekeeper of Chaya Fumiture Manufacturer conducted a stock count of the inventory in the store...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The storekeeper of Chaya Fumiture Manufacturer conducted a stock count of the inventory in the store and determined the value of physical inventory as RM355,125 as at 31 December 2018. The following information was subsequently provided by the accounts department: 1. Total of furniture sold to overseas furniture distributers with the terms FOB shipping point amounted to RM109,550. These sales are still in transit. Total of raw materials purchased with the terms FOB shipping point amounted to RM36,000. These purchases are still in transit. 3. 2. Total of furniture sold to fumiture stores within the Klang Valley with the terms FOB destination amounted to RM56,000. These sales are still in transit. 4. Total of raw materials purchased with the terms FOB destination amounted to RM54,100. These purchases are still in transit. 5. Total of furniture from Chaya Furniture on consignment at fumiture stores within the Klang Valley RM20,000. 6. Total furniture from other manufacturers placed on consignment at Chaya Fumiture amounted to RM3,000. Required Based on the above information, calculate the ending inventory to be included in Chaya Fumiture's books. b. a. (8 marks) For information provided by the accounts department (items 1- 6 in the question), explain the accounting treatment of the inventory Explain actions that can taken to fraudulently improve the appearance of the inventory value in business's financial statements. (18 marks) С. (4 marks) The storekeeper of Chaya Fumiture Manufacturer conducted a stock count of the inventory in the store and determined the value of physical inventory as RM355,125 as at 31 December 2018. The following information was subsequently provided by the accounts department: 1. Total of furniture sold to overseas furniture distributers with the terms FOB shipping point amounted to RM109,550. These sales are still in transit. Total of raw materials purchased with the terms FOB shipping point amounted to RM36,000. These purchases are still in transit. 3. 2. Total of furniture sold to fumiture stores within the Klang Valley with the terms FOB destination amounted to RM56,000. These sales are still in transit. 4. Total of raw materials purchased with the terms FOB destination amounted to RM54,100. These purchases are still in transit. 5. Total of furniture from Chaya Furniture on consignment at fumiture stores within the Klang Valley RM20,000. 6. Total furniture from other manufacturers placed on consignment at Chaya Fumiture amounted to RM3,000. Required Based on the above information, calculate the ending inventory to be included in Chaya Fumiture's books. b. a. (8 marks) For information provided by the accounts department (items 1- 6 in the question), explain the accounting treatment of the inventory Explain actions that can taken to fraudulently improve the appearance of the inventory value in business's financial statements. (18 marks) С. (4 marks)
Expert Answer:
Answer rating: 100% (QA)
Answers and Explanation Ansa FOB shipping point says that the title of the goods is transferred to the buyer when goods are placed on the delivery veh... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The Trial Balance of Wisdom Sdn Bhd at 31 December 2018 is as follows: Additional information: i. Inventory as at 31 December 2018 were valued at RM3,500. ii. Accrued expenses and revenues during the...
-
Explain the difference in the freight terms FOB shipping point and prepay and add.
-
Understanding the freight terms FOB shipping point and FOB destination Required For each of the following events, indicate whether the freight terms are FOB destination or FOB shipping point. a. Sold...
-
Elena, a student in F-1 immigration status from Romania, is on the basketball team. She arrived in the U.S. on June 18, 2023 on a full athletic scholarship that includes $10,000 for her room and...
-
The following note related to equity was reported in Wiebold, Inc.s (USA) annual report. On February 1, the Board of Directors declared a 3-for-2 share split, distributed on February 22 to...
-
Given how financial leverage affects ROE, why does a firm not borrow as much as possible? That is, why doesnt a firm increase borrowing to as close to 100% of financing as it can?
-
Figure 12.74 shows the floor plan of a house. Use the floor plan to answer each question. 1. Draw a graph to represent the floor plan in which each vertex represents a different room (or hallway) and...
-
A computer problem at Southglenn Photography Studios has resulted in incomplete financial statements. Management of the company has asked you to see if you can fill in the missing data. a. Recreate...
-
A 5-meter ladder is sliding down a vertical wall so the distance between the bottom of the ladder and the wall is increasing at 6 meters per minute. At a certain instant, the top of the ladder is 3...
-
On August 1, 2016, Stephanie Ram, a sole proprietor, started a new business, Ram Wholesale Company. The company sells refrigerators (merchandise) to various retail stores and uses the periodic...
-
. Presented below is information related to Carla Vista Co., owned by D. Moore, for the month of January 2024. Ending inventory per perpetual records $21,900 Rent expense $18,700 Ending inventory...
-
19. A local bank lends $12,000 using a 150-day 9% simple interest note that was signed on May 18. The bank later sells the note at a discount of 14% on July 5. Find (a) the discount, (b) the...
-
According to theory and literature, how can the issue of lack of digital knowledge arise in an organisation with references
-
Python and Dash Framework Open the ModuleSixMilestone.ipynb file, which contains the starter code for the Grazioso Salvare dashboard. Upload this file into Apporto and open it using the Jupyter...
-
Write Bill Blizzards annual performance review. Use a narrative. third person format with the five headings specified below. Remember to keep the appraisal balanced. Include his specific...
-
In 1996, Rodney Roberts was arrested for assault. After being taken to the police station in Newark, New Jersey, Rodney believed he would be fingerprinted and released. However, after providing...
-
I cant believe it! Now our pay depends on meeting goals! Doesnt effort count for anything anymore? I have the same goals that Suki does, and I have to work twice as hard to meet them! Myoutcomes
-
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
-
(Stock vs. portfolio basic statistics) John and Mary are considering investing in a combination of ABC stock and XYZ stock. The return on ABC is determined by a coin flip: If the coin is heads, the...
-
(Minimum variance portfolio and efficient portfolio to match target return) During the decade 20052014, Ford and Microsoft (MSFT) were negatively correlated (see data below). Find the following two...
-
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5 : 3 respectively. The following was their balance sheet as at 31 December 2002. On 1 January 2003,...
Study smarter with the SolutionInn App