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Q1. Come up with a merchandise company scenario, where this company performed four purchasing transactions and two sales transactions. Then, calculate the balance of ending

Q1. Come up with a merchandise company scenario, where this company performed four purchasing transactions and two sales transactions. Then, calculate the balance of ending inventory and cost of goods sold after each sales transaction, assuming the company used the FIFO, Moving Average Cost. Use the following table to answer. (2 mark)

Answer:

Date

Purchase

Sales (COGS)

Ending inventory

Q2. ABC Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the current month. Prepare a schedule computing estimate retail inventory using the conventional methods. Round numbers. (1 mark).

Cost

Retail

Beginning Inventory

78,000

105,000

Net purchases

214,000

292,000

Net markups

14,000

Net markdown

3,700

Normal spoilage

2,300

Abnormal spoilage

3,400

5,500

Sales

310,000

Employees discount

11,200

Answer:

Q3. In your own words, discuss (1) the different reasons why a company would decide to dispose its plant assets, (2) the steps needs to be done to account for the disposal. (3) Give a numeric example. (2 mark).

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