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QUESTION 11 Philip's Phones uses the periodic inventory method. Several phones which were purchased more than 12 months ago, have t been sold and are now considered technologically outdated. Despite reducing the selling price on these phones recently, they have not been sold at the end of the current reporting period. Using the following information, at what value should these phones be recorded at the end of the current accounting period. Original purchase cost Expected selling price Marketing and delivery costs Replacement cost Oa. $6,250 b. $4,835 c. $4,820 O d. $4,990 $ 6,250 4,990 $ 170 4,835 QUESTION 12 At 30 June, the following information for the past financial year was available for chilli paste manufacturer, Choice Chillies Ltd: Ending inventory Beginning inventory Cost of sales Sales revenue The days in inventory for Choice Chillies Ltd (rounded to the nearest day) is: $60,900 $51,500 $707,500 $976,500 a. 17 days Ob. 29 days Oc. 13 days Od. 31 days QUESTION 13 Choice Chillies uses the perpetual inventory system to manage its raw material inputs of chilli peppers. What is the correct entry for the credit purchase of 9 tonnes of chilli peppers at $1,470 plus GST of $147 per tonne from the local growers? a. DR Inventory $14,553; CR GST Paid $1,323; CR Accounts payable $13,230 b. DR Inventory $13,230; DR GST Paid $1,323; CR Accounts payable $14,553 O c. DR Accounts payable $14,553; CR Inventory $13,230; CR GST Paid $1,323 Od. DR Inventory $14,553; CR Accounts payable $14,553 QUESTION 14 The following information is available for Gamers Galore Ltd: profit $310 million; net cash provided operating activities $553 million; total expenses $2,045 million; depreciation expense $325 million; cash dividends $428 million; capital expenditures $812 million; and cash and cash equivalents $510 million. Gamers Galore Ltd's cash to daily cash expenses ratio is calculated as: a. $553 million +[$2,045 million +365] b. $510 million + [($2,045 million - $325 million) + 365] O c. $553 million + [($2,045 million - $325 million) +365] d. $510 million+ [$2,045 million +365] QUESTION 15 If a cheque correctly written and paid by the bank for $472 is incorrectly recorded on the company's books for $427 the appropriate treatment on the bank reconciliation would be to: a. add $45 to the cash at bank balance records. Ob. deduct $45 from the cash at bank balance per records. c. deduct $45 from the balance as per bank statement. Od. add $45 to the balance as per bank statement.