1.1 REQUIRED Use the information provided below to prepare an extract of the statement of comprehensive income that includes the value of closing inventory as at 31 December 2022 and gross profit for the year ended December 2022 using the following methods of inventory valuation: 1.1.1 FIFO 1.1.2 Weighted average cost INFORMATION GH Suppliers had an inventory of 10 wallets at R50 each on 01 January 2022, the start of the financial year. During 2022 the following purchases and return were recorded: 75 wallets at R60 each were purchased on 20 February 2022. 25 wallets at R80 each were purchased on 25 August 2022. 10 wallets that were purchased on 25 August 2022 were returned to the supplier. During 2022, 50 wallets were sold at R80 each and 30 wallets were sold at R100 each. 1.2 REQUIRED Calculate the economic order quantity (EOQ) from the information provided below. INFORMATION The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is sold at cost price plus 50%. The ordering cost amounts to R25 per order and the holding cost per unit is equal to 10% of the unit cost of the item. 1.3 REQUIRED Use the information given below to determine the cost (as a percentage, expressed to two decimal places) to Ascot Traders of not accepting the discount. INFORMATION Max Wholesalers granted credit terms of 60 days to Ascot Traders but the wholesaler is prepared to allow a discount of 2.5% if the account is settled within 15 days.
1.1 REQUIRED Use the information provided below to prepare an extract of the statement of comprehensive income that includes the value of closing inventory as at 31 December 2022 and gross profit for the year ended December 2022 using the following methods of inventory valuation: 1.1.1 FIFO 1.1.2 Weighted average cost INFORMATION GH Suppliers had an inventory of 10 wallets at R50 each on 01 January 2022, the start of the financial year. During 2022 the following purchases and return were recorded: 75 wallets at R60 each were purchased on 20 February 2022. 25 wallets at R80 each were purchased on 25 August 2022. 10 wallets that were purchased on 25 August 2022 were returned to the supplier. During 2022, 50 wallets were sold at R80 each and 30 wallets were sold at R100 each. 1.2 REQUIRED Calculate the economic order quantity (EOQ) from the information provided below. INFORMATION The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is sold at cost price plus 50%. The ordering cost amounts to R25 per order and the holding cost per unit is equal to 10% of the unit cost of the item. 1.3 REQUIRED Use the information given below to determine the cost (as a percentage, expressed to two decimal places) to Ascot Traders of not accepting the discount. INFORMATION Max Wholesalers granted credit terms of 60 days to Ascot Traders but the wholesaler is prepared to allow a discount of 2.5% if the account is settled within 15 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.1
REQUIRED
Use the information provided below to prepare an extract of the statement of comprehensive income that
includes the value of closing inventory as at 31 December 2022 and gross profit for the year ended December
2022 using the following methods of inventory valuation:
1.1.1 FIFO
1.1.2 Weighted average cost
INFORMATION
GH Suppliers had an inventory of 10 wallets at R50 each on 01 January 2022, the start of the financial year.
During 2022 the following purchases and return were recorded:
75 wallets at R60 each were purchased on 20 February 2022.
25 wallets at R80 each were purchased on 25 August 2022.
10 wallets that were purchased on 25 August 2022 were returned to the supplier.
During 2022, 50 wallets were sold at R80 each and 30 wallets were sold at R100 each.
1.2
REQUIRED
Calculate the economic order quantity (EOQ) from the information provided below.
INFORMATION
The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is
sold at cost price plus 50%. The ordering cost amounts to R25 per order and the holding cost per unit is equal
to 10% of the unit cost of the item.
1.3
REQUIRED
Use the information given below to determine the cost (as a percentage, expressed to two
decimal places) to Ascot Traders of not accepting the discount.
INFORMATION
Max Wholesalers granted credit terms of 60 days to Ascot Traders but the wholesaler is prepared to allow a
discount of 2.5% if the account is settled within 15 days.
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