Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and incurred the following costs: Purchase price 100,000 Import duties 10,000 Value added tax 13,000 5,000 Transportation and handling costs Commission to broker 2,000 130,000 Required: How much is the cost of purchase of the imported goods

Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and incurred the following costs: Purchase price 100,000 Import duties 10,000 Value added tax 13,000 5,000 Transportation and handling costs Commission to broker 2,000 130,000 Required: How much is the cost of purchase of the imported goods

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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For the year ended 31 March 2021, Manchester Ple had total domestic and foreign credit sales of £40 million. The cost of these credit sales was £2o million. Trade payables are associated with domestic and international suppliers. The current assets and liabilities of Manchester Ple as of March 2021 are summarised as follows: cooo co00 Inventory 5,000 Trade Receivablesf6,000 Current Assets 11.000 Trade Payables 2.000 Overdraft 4.000 Current Liabilities 6,000 Net current assets 5,000 For the year ended 31 March 2022, Manchester Ple predicts that the cost of sales would decline to 60% of sales, and the credit sales would still be at £40 million. The company expects current assets to comprise of inventory and trade receivables, and current liabilities to comprise of trade payables and the company's overdraft. Manchester Ple expects to achieve the following target working capital ratio values for the year ended 31 March 2022: Trade receivables days: 70 Trade payables days: 50 Inventory…
....... Decision on Accepting Additional Business Miramar Tire and Rubber Company has capacity to produce 196,000 tires. Miramar presently produces and sells 150,000 tires for the North American market at a price of $95.00 per tire. Miramar is evaluating a special order from a South American automobile company, Rio Motors. Rio Motors is offering to buy 23,000 tires for $75.75 per tire. Miramar's accounting system indicates that the total cost per tire is as follows: Direct materials Direct labor Factory overhead (60% variable) $36 13 22 Selling and administrative expenses (30% variable) 19 $90 < Total Miramar pays a sales commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5.00 per tire. In addition, Rio has made the order…
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cost of P500,000. Required: Compute the cost charged to cost of goods sold. а. b.
One of the industrial companies 10,000 dinars for raw material purchases, 500 dinars purchases allowances, 300 dinars returns for purchases, 800 dinars for the expenses of transporting raw materials, 1,000 dinars customs fees on the materials purchased, if you know that the stock of the materials at the beginning of the period amounted to 4000 dinars, and the stock of the materials at the end of the period reached 3000 dinars, from the previous information, the cost of the raw materials used is? e 7:09
BLOCK D/2018/1 In t1, you purchase goods on target in the amount of € 9 thousand (net). Furthermore, transport costs of € 500 (net) to be paid to an external service provider for the purchase of the goods are incurred (incidental acquisition costs); payment is also made on destination. Your col- lege posts the goods receipt as follows: purchase of goods € 9,000 and amounts of € 1,710 intrade payables € 10,710 as well as Other operating expenses for trade payables €500. The goods are to be sold in t2. It is foreseeable that you will be able to sell the goods witha high profit margin. Do the postings of the colleague lead to an accrual determination of success? If further bookings or corrections are required in t1, make them and justify your action with reference to the possible bookings. relevant legal regulations!
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