Description

Q1. ABC Ltd. is a metal product manufacturing company. The following are the purchases and issues during the month of July, 2019:(1.5 Marks)

Date

July 1

Beginning Inventory

400 units @ $120

July 6

Purchase

250 units @ $150

July 11

Purchase

200 units @ $100

July 17

Sales

600 units @ $300

July 19

Purchase

150 units @ $120

July 21

Purchase

350 units @ $160

July 31

Sales

500 units @ $350

Required:

Using FIFO and Average Cost Method-

  • Find out the value of Ending Inventory after each transaction.
  • Find out the value of cost of goods sold after each sales.

Note: You can round off the values for the calculations under average cost method.

Answer:

Q2. What formats are used to prepare Statement of Financial Position? Prepare a Statement of Financial Position of MNT Company for the year ended 31st December, 2015 in a proper format from the following list of accounts:(2 Marks)

List of Accounts

Amount ($)

Long Term Investments

51,000

Land

68,500

Buildings

165,000

Equipment

170,000

Goodwill

15,000

Patents

5,500

Inventories

270,000

Account Receivable

90,500

Prepaid Expenses

28,000

Short term investments

27,000

Cash and cash equivalents

26,500

Share Capital-Ordinary

210,000

Share Capital-Preference

220,000

Retained Earnings

93,500

Bonds (Liabilities due January 31, 2025)

233,750

Notes payable

44,000

Account payable

108,350

Salary payable

4,200

Deposits received from customers

3,200

.Answer:

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