Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An evaluation of a physical stock count on 30 April, 2020 in respect of the financial year ending on that date at Cranfleet Commodities has

image text in transcribed
An evaluation of a physical stock count on 30 April, 2020 in respect of the financial year ending on that date at Cranfleet Commodities has produced a figure of 6187033 The firm's book keeper has approached you, as the accountant, for asistance in dealing with the following matmers so enable him to amive at a final figure of clouing inventory for inclusion in the annual accounts (1) 320 components included at their original cost of Ell each can now be bought in for only 6 each due to over production by the manufactuner. This drop in price is expected to be only temporary and the punchase price is espected to exceed its oniginal figure within 32 months Cranfleet Commodities intends to continue seling the esisting stock at the present price of E1s each (2) R has been dicovered that certain items which had cost 5 657 have been damaged. It will cost 804 to repair them after which they can be sold for E6,321 (3)On one stock sheet a sub-total of 9,305 has been carried forward as 1,09 4)480units which cost 1 50each have been extended at 615.00 each HOME ASSIGNMENT #5 (5) The 'rm has sent goods with a sesng price of tL50(berg cost plus 25%) to a stomer on a sale or retum bash. At 30 April 2020, the customer had not signified acceptance, but the goods have not been returned, and consequently had not been included in the physical stock count 06) Induded in stock were goods bought on credit for 4679 from by leet EnterpisesA 30 April 2020, Cranfleet Commodties had not paid this account ) Byfleet Enterprises had aho sent some free samples (for advertising purposes onlyl These have been included n stock at their catalopue price of 6352 Required Taking account of such of the above facts as are relevant, cakculate a cloning stock figure for indlusion in the 2020 annual accounts of Canfleet Commodities, giving reasons for the action you have taken in each individual case Comment Closing inventory Balance c/f (nitial balance) 187033

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Benfords Law

Authors: Mark J. Nigrini

1st Edition

1118152859, 9781118152850

More Books

Students also viewed these Accounting questions

Question

What do you think accounts for the fact that turnover is low?

Answered: 1 week ago