Task 1

List at least three of the four overall objectives for controlling purchase of inventories and assets

a business supplies the following information in regards to it inventory

item quantity Unit costs $ Price net realisable value $

X 35 28 32

Y 60 45 35

calculate the amount that would be recorded for closing inventory

Task 2

A firm uses a periodic inventory system. detail of an inventory disclosed

1/7/2018 Opening balance 400 units @ $9.00 per unit

9/7/2018 Sold to R. Kent 250 Units

15/7/2018 Purchase (E.Curtis) 160 Units @ $9.50 per unit

21/7/2018 Sold 100 Unit

31/7/2018 Closing inventory 210 units

Amounts exclude GST which is applicable

Required

a) prepare the general journal entry for the sale on the credit to R.kent on the 9th July 2018 The unit selling price was $40.00 per unit plus 10% GST (Narration not required)

b) prepared the general journal for the purchase on credit from E.Curtis on the 15th July 2018 (narration not required)

c) What is the value of ending inventory if the weight average cost method of valuing inventory is used? (round the average price to 2 decimal places)

d) What is the value of ending inventory if he FIFO method of valuing inventory is used

e) assuming the FIFO method of valuing inventory is used what is the general journal entry to record closing stock into the accounts