Question
Q8. (Trading account, average cost) Clyde Wishbone breeds and sells sheep. During the 2017/18 year records disclosed the following: Quantity Value ($) Sheep on Hand
Q8.
(Trading account, average cost)
Clyde Wishbone breeds and sells sheep. During the 2017/18 year records disclosed the following:
| Quantity | Value ($) |
Sheep on Hand 30 June 2017 | 8,200 | 47,900 |
Purchases | 500 | 9,200 |
Natural Increase | 2,900 |
|
Sales | 4,300 | 92,400 |
Rations | 100 |
|
Deaths | 300 |
|
Clyde chooses to use the prescribed value for natural increase and average cost for rations and closing stock.
Required:
Prepare the average cost calculations and the trading account for the 2017/18 tax year.
Average Cost Calculations | ||
| Qty. of Sheep | $ |
Opening Stock |
| $ |
Purchases |
| $ |
Natural Increase @ Prescribed Value |
| $ |
Total |
| $ |
Average Cost of One Sheep |
| $ |
|
|
|
Average Cost of Rations | Qty Sheep for Rations | $ |
|
|
|
Average Cost of Closing Stock | Qty Sheep at Closing Stock | $ |
Sheep Trading Account | |||||
| Qty. | $ |
| Qty. | $ |
Opening Stock |
|
| Sales |
|
|
Purchases |
|
| Rations |
|
|
Natural Increase |
|
| Deaths |
|
|
Gross Profit |
|
| Closing Stock |
|
|
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