The following transactions of Heron Ltd took place during January 2022 in respect of component X used in production: Jan Stock of component X on hand Issued to production 12 Purchased from supplier 01 08 15 18 25 27 Returned to supplier (purchased on 12 January 2022) Issued to production Purchased from supplier Issued to production Required: Calculate the value of closing inventory on 31 January 2022 using the: 2.1.1 First-in-first-out (FIFO) method 2.1.2 Weighted Average Cost Method 150 units @ R24 per unit 110 units 200 units @ R25 per unit 30 units 170 units 140 units @ R26 per unit 130 units

The following transactions of Heron Ltd took place during January 2022 in respect of component X used in production: Jan Stock of component X on hand Issued to production 12 Purchased from supplier 01 08 15 18 25 27 Returned to supplier (purchased on 12 January 2022) Issued to production Purchased from supplier Issued to production Required: Calculate the value of closing inventory on 31 January 2022 using the: 2.1.1 First-in-first-out (FIFO) method 2.1.2 Weighted Average Cost Method 150 units @ R24 per unit 110 units 200 units @ R25 per unit 30 units 170 units 140 units @ R26 per unit 130 units

Name: please help me to solve this question Information:The following transa
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: please help me to solve this question Information:The following transactions of Heron Ltd took place during January 2022 in respect of component X used inproduction:JanStock of component X on handIssued to production12 Purchased from supplier01081518

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1.2 REQUIRED Calculate the following from the information provided below: 1.2.1 Value of closing inventory using the first-in-first-out (FIFO) method 1.2.2 Value of issues to production using the first-in-first-out (FIFO) method 1.2.3 Value of closing inventory using the weighted average cost method INFORMATION The following transactions of Gem Manufacturers took place during August 2022 in respect of a component used in production: Aug 01 11 17 18 31 Opening inventory Purchased from a supplier Purchased from a supplier Returned to the supplier (see 17 August) Issues to production during August 1 000 units at R20 per unit 3 000 units at R21 per unit 1 800 units at R22 per unit 800 units 3 800 units
Which one of the following costs can be accurately identified as forming part of a cost centre? Select one: O A. Primary material B. Salary of the factory supervisor O C. Indirect material D. Maintenance material
Subject :- Account The Constance Corporation’s inventory on December 31, 2024, was $132,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following: Inventory costing $22,000, shipped f.o.b. shipping point from a vendor on December 27, 2024, was received by Constance on January 5, 2025. Inventory costing $52,000 was shipped to a customer f.o.b. shipping point on December 28, 2024, arrived at the customer’s location on January 6, 2025. Inventory costing $28,000 was being held on hand for Jess Company on consignment. Estimated sales returns are 20% of annual sales. Sales revenue was $564,000 with a gross profit ratio of 30%. What amount should Constance Corporation report as inventory in its December 31, 2024, balance sheet? Multiple Choice $234,960 $239,085 $204,960 $182,960
The following data are available for Vortex Manufacturing Pty Ltd at 30 June 2020: Inventory type Cost Net realisable value Raw materials $199,200 $212,420 Work in progress 171,900 162,950 Finished goods 290,400 263,880 Inventories are valued at the lower of cost and net realisable value. The value of inventory is derived by the method most appropriate to each particular class of inventory and the first-in-first-out basis is applied. Required: Explain the lower of cost and net realisable value basis of accounting for inventories. Calculate the lower of cost and net realisable value for inventory. Prepare the adjusting entry at 30 June 2020 to record any adjustments for the valuation of inventory. Prepare an extract of the inventory note section for
1. Global Entity is a retailer situated in Windhoek that sells various products. On 12 December 2021, Global Entity ordered trade inventories for an invoice price of N$40 000. The inventories were delivered on 20 December 2021 and the amount was settled on the same day. Global Entity makes use of the perpetual inventory system. Show the effect of each transaction on the Accounting Equation. Use the equation: A= OE + L a. Asset; +40 000 = Equity; nil + Liability; nil. Asset; -40 000 b. Asset; +40 000 = Equity; nil + Liability; nil. Asset; +40 000 c. Asset; -40 000 = Equity; -40 000 + Liability; nil d. Asset; +40 000 = Equity; nil + Liability; +40 000 e. Asset; nil = Equity; -40 000 + Liability; +40 000 2. Global Entity is a retailer situated in Windhoek that sells various products. For the month of March 2022, the water and electricity account due to the local municipality was recorded to amount to N$8 000. Included in the N$8 000 was Mr G, the owner’s…
1.5 From the information provided below complete the table using the FIFO method of inventory valuation: Date Quantity Price Amount Quantity Price Amount Quantity Price Amount Date Transaction 01 The following transactions of Franco Manufacturers took place during March 2022: 05 12 Purchased 24 16 28 Opening inventory Purchased from a supplier Purchased from a supplier Purchased from a supplier Issues and returns Issued to production Issued to production Units 1600 600 1 300 1600 Balance 1800 1 300 Price per unit R3.50 R4.00 R4.50 R5.00 ? ?
Required:a. Complete a subsidiary ledger record for the computer using each of the three inventory valuation methods listed below 1. Average cost.2. FIFO.3. LIFO. Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020. b. Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain
The LIFO Inventory Reserve Waterloo Manufacturing Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company's accounting records for the year: y₁ met nes Fi Pr Current assets (under FIFO) $18,000,000 Current liabilities 15,500,000 7,000,000 7,700,000 Inventory under LIFO. Inventory under FIFO Calculate the company's (a) LIFO inventory reserve and (b) current ratio assuming (i) FIFO and (i) LIFO, If the company's LIFO gross profit was $10,000,000 and the change in the LIFO inventory reserve from the prior year to the current year was $1,200,000 calculate the company's gross profit under FIFO. Round current ratio to two decimal points a LIFO inventory reserves 1,200,000 * FIFO b. Current ratio 1.33 X Gross profit under FIFO- $ 11,400,000 * LIFO 1,25 x
The ABC sole proprietorship deals with the trade of IT items and the provision of related services. Carry out the adjustment entries of the accounts for the fiscal year 20X6 as well as those for the determination of the gross profit taking into account the following information: For the accounting of inventories, the company applies a periodic inventory and evaluates the inventories using the weighted average cost method. The company trades the kind P. The initial inventory consists of 20 units with a purchase price of € 50 per unit. In the fiscal year, 20X6 bought 80 units for € 55 per unit and 80 units for € 60 per unit. In the inventory of 31/12/20X6, the stocks in the warehouse consist of 30 units whose liquidation price amounts to € 55 per unit. Total gross merchandise sales amounted to €45,000 and sales returns to €400. During the 20x6 fiscal year, the company had purchased $1,000 at a $200 exchange rate= € 1. On 31/12/20X6, the current USD exchange rate is $1 =€ 1.2. The…
Assume that Distributor Company Inc. has the following inventory item on hand at December 31, 2018:Historical cost : $1,000Replacement cost: $900Estimated Selling price: $ 1,050Estimated costs to complete and sell: $100Required: Write down the journal entry at end of 20181) Follow IFRS2) Follow U.S GAAP
Groh Co., recorded the following data pertaining to raw material X during January 2019: Units Date Received Cost Issued On Hand 1/1/19 1/11/19 1/22/19 C8.00 3,200 1,600 Inventory Issue 1,600 Purchase 4,000 €9.40 5,600 The moving-average unit cost of X inventory at January 31, 2019 is?
The following transactions of West Ham Manufacturers, that uses the perpetual inventory system, took place during February 2021 in respect of a part used in production: Feb 01 Stock on hand 300 units @ R17 per unit Issued to production Purchased from supplier Issued to production Returned to supplier (purchased on 14 February 2021) 60 units Issued to production 07 210 units 14 900 units @ R17.50 per unit 15 350 units 16 400 units 25 Using the first-in-first-out (FIFO) method, the value of closing inventory as at 29 February 2021 is O A. R7 000 O B. none of the above O C. R3 060 O D. R3 150