Your organization uses the moving weighted average cost method of valuing inventories. During August....
TASK 2 1. Your organization uses the Moving Weighted Average cost met During August 2019, the following inventory details were recorded: (10 pomo) ving Weighted Average cost method of valuing inventories Opening Balance 5 August 10 August 186 August 23 August 30 units valued at $2.00 each Purchase of 50 units at $2.40 each Sold 40 units Purchase of 60 units at $2.50 each Sold 25 units What is the value of the inventory at 31" August 2019? a. S172.50 b. $176.25 c. $180.00 d. $187.50 2. What is the correct double entry to record the depreciation charge for a period? a. DR Depreciation expense CRAccumulated depreciation b. DR. CR Accumulated depreciation Depreciation expense 3. Philpott Company purchased a machine with an estimated useful life of 10 years for $76,000 on 30th September 2016. The machine had a scrap value of $16,000. What are the ledger entries to record the depreciation charge for the machine in the year ended 30th September 2019? a. Dr. Depreciation expense Cr. Accumulated depreciation b. Dr. Depreciation expense Dr. Merchandise Inventory Cr. Accumulated depreciation c. Dr. Accumulated depreciation Cr. Depreciation expense d. Dr. Accumulated depreciation Cr. Merchandise Inventory 4. Which statement is TRUE regarding goods in Transit? a. Merchandise shipping FOB destination is included in the buyer's inventory during shipping b. Rights and risks of ownership have transferred to the buyer if merchandise shipped FOB destination c. If the seller sends merchandise shipped via FOB shipping, the buyer includes these goods in inventory d. If ownership has passed to purchaser, the seller paid the delivery costs 5. Krystal's final accounts for the year ended she prepared the accounts, Krystal did not includ for the year ended 31 October 2019 report a loss of $1,486. When accrued revenue of $834. accounts, Krystal did not include an accrued expense of $1,625 and What is Krystal's profit or loss for the y profit or loss for the year ended 31 October 2019 following the inclusion of the accruals? a. A loss of S695 b. A loss of $2,277 c. A loss of $3.945 d. A profit of $1,807 6. At 31 May 2019 Nicholas trial balance included the following items: Inventory at 1 June 2018 23,856 Accounts receivables 55,742 Accounts payables 32,165 Uneamed revenue 5,855 Long-term loan due for repayment in 2019 15,000 What is the value of Nicholas current liability at 31" May 2019? a. $38,020 b. $53,020 c. $61,597 d. $76,597 7. Jenny has a bank balance of $550.00 at the start of the week. During the week the following transactions occurred: Day 1 She sells goods on credit for $876.00 Day 2 She receives a cheque for $400.00 from a credit customer Day 3 She purchases office equipment with a list price of $1,000.00 but receives a 10% discount for paying immediately by cheque. How much does Jenny have in the bank at the end of the week? a. $2,826.00 b. $400.00 c. $50.00 d. $126.00 5. Krystal's final accounts for the year ended she prepared the accounts, Krystal did not includ for the year ended 31 October 2019 report a loss of $1,486. When accrued revenue of $834. accounts, Krystal did not include an accrued expense of $1,625 and What is Krystal's profit or loss for the y profit or loss for the year ended 31 October 2019 following the inclusion of the accruals? a. A loss of S695 b. A loss of $2,277 c. A loss of $3.945 d. A profit of $1,807 6. At 31 May 2019 Nicholas trial balance included the following items: Inventory at 1 June 2018 23,856 Accounts receivables 55,742 Accounts payables 32,165 Uneamed revenue 5,855 Long-term loan due for repayment in 2019 15,000 What is the value of Nicholas current liability at 31" May 2019? a. $38,020 b. $53,020 c. $61,597 d. $76,597 7. Jenny has a bank balance of $550.00 at the start of the week. During the week the following transactions occurred: Day 1 She sells goods on credit for $876.00 Day 2 She receives a cheque for $400.00 from a credit customer Day 3 She purchases office equipment with a list price of $1,000.00 but receives a 10% discount for paying immediately by cheque. How much does Jenny have in the bank at the end of the week? a. $2,826.00 b. $400.00 c. $50.00 d. $126.00
