Presented below is a data relative to PINK SHEET company limited at the end of 31st August, 2013 Stock Item Number of Units In Inventory Original cost per unit GH Unit Selling Price Q 16,000 12 25 R 18,000 15 23 S 20,000 10 21 T 18,500 15 24 U 15,000 14 26 Stock items Q, S and U have become obsolete as a result of new discoveries. Respondents, an auctioneer has agreed to find buyers for the stock items Q, S and U for a 10% commission on net sales values. It is estimated that stock item Q and U will have to be sold at 50% of the cost price whilst stock item S will be sold at 75% of the selling price. Incidental expenses (such as carriage, packaging, etc) is estimated GH 2 per unit for all categories of stock. You are required to determine the value of stock to be included in the Financial Position as at 31st August, 2013. State the bases of valuation of the stock items. Show all calculations.
Presented below is a data relative to PINK SHEET company limited at the end of 31st August, 2013 Stock Item Number of Units In Inventory Original cost per unit GH Unit Selling Price Q 16,000 12 25 R 18,000 15 23 S 20,000 10 21 T 18,500 15 24 U 15,000 14 26 Stock items Q, S and U have become obsolete as a result of new discoveries. Respondents, an auctioneer has agreed to find buyers for the stock items Q, S and U for a 10% commission on net sales values. It is estimated that stock item Q and U will have to be sold at 50% of the cost price whilst stock item S will be sold at 75% of the selling price. Incidental expenses (such as carriage, packaging, etc) is estimated GH 2 per unit for all categories of stock. You are required to determine the value of stock to be included in the Financial Position as at 31st August, 2013. State the bases of valuation of the stock items. Show all calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Presented below is a data relative to PINK SHEET company limited at the end of 31st August, 2013
|
Stock Item |
Number of Units In Inventory |
Original cost per unit GH |
Unit Selling Price |
|
Q |
16,000 |
12 |
25 |
|
R |
18,000 |
15 |
23 |
|
S |
20,000 |
10 |
21 |
|
T |
18,500 |
15 |
24 |
|
U |
15,000 |
14 |
26 |
Stock items Q, S and U have become obsolete as a result of new discoveries. Respondents, an auctioneer has agreed to find buyers for the stock items Q, S and U for a 10% commission on net sales values. It is estimated that stock item Q and U will have to be sold at 50% of the cost price whilst stock item S will be sold at 75% of the selling price. Incidental expenses (such as carriage, packaging, etc) is estimated GH 2 per unit for all categories of stock.
You are required to determine the value of stock to be included in the Financial Position as at 31st August, 2013. State the bases of valuation of the stock items. Show all calculations.
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