At the end of May 2016 there was in stock 1,200 units of Product PZ25 at Jamaica Co Ltd, valued at $200 each. During June 2016, the company sold one unit of the product for $370. The following receipts and sales of the stock item took place during the month: Date Receipts Date Sales June 2016 Quantity June 2016 11 Total Cost $105,000 $144.000 $55,000 The accounting records also revealed that the following costs were incurred in the selling of “MP250" during June 2016: carriage outwards, S100,000; salaries, S160,000; electricity $72,000. Quantity 1,400 1,040 Sales Price 800 $420,000 $306,800 $238.000 17 1,200 440 21 25 30 680 Required: (a) Jamaica Co. Ltd stores ledger cards showing the values of the receipts, issues and closing stock for the month of June 2016 using the FIFO stock valuation metho (b) Prepare a statement of profit or loss made from selling "PZ25" during the month of June 2016 if $20,000 was pre-paid for electricity while $24,000 was owing for salaries at the end of June 2016. (c) Define three (3) types of inventories that have to be valued at the end of an accounting period.

At the end of May 2016 there was in stock 1,200 units of Product PZ25 at Jamaica Co Ltd, valued at $200 each. During June 2016, the company sold one unit of the product for $370. The following receipts and sales of the stock item took place during the month: Date Receipts Date Sales June 2016 Quantity June 2016 11 Total Cost $105,000 $144.000 $55,000 The accounting records also revealed that the following costs were incurred in the selling of “MP250" during June 2016: carriage outwards, S100,000; salaries, S160,000; electricity $72,000. Quantity 1,400 1,040 Sales Price 800 $420,000 $306,800 $238.000 17 1,200 440 21 25 30 680 Required: (a) Jamaica Co. Ltd stores ledger cards showing the values of the receipts, issues and closing stock for the month of June 2016 using the FIFO stock valuation metho (b) Prepare a statement of profit or loss made from selling "PZ25" during the month of June 2016 if $20,000 was pre-paid for electricity while $24,000 was owing for salaries at the end of June 2016. (c) Define three (3) types of inventories that have to be valued at the end of an accounting period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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