Question
QUESTION 2 (20 points; 45 minutes) Distribution Ltd. sells a single product. It will send you the following information concerning its operations for the month
QUESTION 2 (20 points; 45 minutes)
Distribution Ltd. sells a single product. It will send you the following information concerning its operations for the month of December 2020. 1 December 1 The company had 3,000 units with an original cost of $ 130 unity. December 6 Distribution Ltd. purchased 3,500 units on credit at a unit price of $ 150. December 12, Distribution Ltd. sold 3,800 units for cash at a unit price of $ 400. December 18 Distribution Ltd. sold 1,600 units on credit at a unit price of $ 450. December 22, Distribution Ltd. purchased 4,000 units on credit at a price of $ 160 per unit. December 30, Distribution sold 4,500 units on credit at a price of $ 420 per unit. A physical count of items in stock as of December 31, 2020 reveals the existence of 600 units. WORK TO DO : 1. Assuming that Distribution Ltd. uses the perpetual inventory system and that the company attributes any discrepancy between the actual quantities and the accounting records on the fly, determine the cost of sales and the cost of closing inventory as at December 31, 2020 by assuming that: a. Distribution Ltd. uses the average cost method to determine the cost of inventory of goods. b. Distribution Ltd. uses the successive exhaustion method (P.E.P.S) to determining the cost of inventory of goods. 2. Suppose that Distribution Ltd. uses the successive exhaustion method (P.E.P.S) for determining the cost of its stocks. As of the end of the financial year, December 31, 2020, the net realizable value of the product marketed by Distribution is $ 148 per unit. Determine the value of inventory to be presented in Distribution's statement of financial position Ltd. on December 31, 2020 and make the required accounting entry on that date. Explain and justify your answer.
QUESTION 2 (20 points: 45 minutes) La socit Distribution lte vend un seul produit. Elle vous transmet les renseignements suivants concernant ses oprations du mois de dcembre 2020. 1er dcembre L'entreprise possdait 3 000 units dont le cot d'origine tait de 130 $ l'unit. 6 dcembre Distribution Ite a achet crdit 3 500 units au prix unitaire de 150 $. 12 dcembre Distribution lte a vendu au comptant 3 800 units au prix unitaire de 400 $. 18 dcembre Distribution lte a vendu crdit 1 600 units au prix unitaire de 450 $. 22 dcembre Distribution lte a achet 4 000 units crdit au prix de 160 $ l'unit. 30 dcembre Distribution a vendu 4 500 units crdit au prix de 420 $ l'unit. Un dnombrement physique des articles en stock au 31 dcembre 2020 rvle l'existence de 600 units. TRAVAIL FAIRE : 1. En supposant que Distribution Ite utilise le systme de l'inventaire permanent et que l'entreprise attribue tout cart entre les quantits relles et les registres comptables au vol, dterminez le cot des ventes et le cot du stock de clture au 31 dcembre 2020 en supposant que: a. Distribution lte utilise la mthode du cot moyen pour la dtermination du cot des stocks de marchandises. b. Distribution lte utilise la mthode de l'puisement successif (P.E.P.S) pour la dtermination du cot des stocks de marchandises. 2. Supposons que la socit Distribution lte utilise la mthode de l'puisement successif (P.E.P.S) pour la dtermination du cot de ses stocks. En date de fin d'exercice, le 31 dcembre 2020, la valeur de ralisation nette du produit commercialis par Distribution est de 148 $ l'unit. Dterminez la valeur des stocks prsenter l'tat de la situation financire de Distribution lte au 31 dcembre 2020 et passez l'criture comptable requise cette date. Expliquez et justifiez votre rponseStep by Step Solution
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