prepare an extract of the statement of comprehensive income that would reflect, amongst others, the value of closing inventory and gross profit for the year ended 31 December 2020 using the following methods of inventory valuation first in first out information saha sportshop had the following inventory of cricket bats 01 January 2020,the start of the financial year quantity =30bats unit purchase price =R250 carriage on purchases per unit=R10 during 2020 the following purchases, returns and sales were made: 270 bats were purchased at R270 each on 31 March 2020. carriage amount to R10 per unit 100 bats that were purchased on 31 March 2020 were returned to the supplier. no refund could be obtained on the carriage 300 bats were purchased at R280 each on 31 August 2020. carriage amounted to R15 per unit 400 bats were sold during the year at R500 each note: the carriage costs are not included in the purchase prices stated above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

prepare an extract of the statement of comprehensive income that would reflect, amongst others, the value of closing inventory and gross profit for the year ended 31 December 2020 using the following methods of inventory valuation

first in first out

information
saha sportshop had the following inventory of cricket bats 01 January 2020,the start of the financial year

quantity =30bats
unit purchase price =R250
carriage on purchases per unit=R10

during 2020 the following purchases, returns and sales were made:

270 bats were purchased at R270 each on 31 March 2020. carriage amount to R10 per unit

100 bats that were purchased on 31 March 2020 were returned to the supplier. no refund could be obtained on the carriage

300 bats were purchased at R280 each on 31 August 2020. carriage amounted to R15 per unit

400 bats were sold during the year at R500 each

note: the carriage costs are not included in the purchase prices stated above

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education