Afsdf - Lecture notes 1 PDF

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Week 10 Tutorial

Score 

1. The jounal enties to record a credit sale under the perpetual inventoy system will include a: A

credit to COGS

B

credit to inventoy

C

debit to sales

D

None of the above

2. A company discovered that inventoy that cost $2 000 and nomally sells for $2 400 has become obsolete and will be scrapped next month. The effect of the adjusting jounal enty is to A

decrease profit by $2 000 and decrease total assets by $2 000.

B

decrease profit by $2 400 and decrease total assets by $2 000.

C

decrease profit by $2 400 and decrease total assets by $2 400.

D

decrease profit by $2 000 and not affect total assets.

3. Which of the following statements about the use of the FIFO assumption is NOT tue? A

The FIFO assumption assigns the more recent purchase costs to the balance sheet inventoy asset account.

B

The FIFO assumption is not affected by the inventoy control method.

C

In peiods of ising pices it produces a higher profit than LIFO.

D

The FIFO assumption produces inventoy asset values that are based on older purchase costs.

4. The following infomation relates to Moderate Ltd: Net sales  $500 000 Beginning inventoy  $60 000 Ending inventoy  $36 000 Cost of goods sold  $210 000 What were the purchases for the peiod? A

$135 000

B

$186 000

C

$214 000

D

None of the above

 

5. The following lots of a paticular commodity were available for sale duing the year: Beginning inventoy 10 units at $60 First purchase 25 units at $63 Second purchase 30 units at $64 Third purchase 15 units at $70 The fim uses the peiodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of inventoy at the end of the year, according to the first-in, first-out method? A

$1 200

B

$1 230

C

$1 370

D

$1 400

6. A used machine with a purchase p ice of $85 000, requiing an overhaul costing $8 000, installation costs of $4 000 and testing costs of $2 000, would have a cost basis of: A

$85 000

B

$93 000

C

$97 000

D

$99 000

7. Jacques Ltd purchased a tuck for $45 000 on 1 July 2018. It had an estimated useful life of three years. It was depreciated using the straight-line method. The financial year ends on 30 June. What was the accumulated depreciation at 30 June 2020? A

$15 000

B

$30 000

C

$45 000

D

$0

8. Equipment that cost $550 000 and had accumulated depreciation of $300 000 was sold for $180 000. This results in a: A

$70 000 gain

B

$70 000 loss

C

$180 000 gain

D

$370 000 loss

9. Tanner Ltd purchased an item of equipment on the first day of the financial peiod, 1 July 2018, for $200 000. The equipment was depreciated using the reducing balance method and a rate of 40 per cent. If the machine was sold for $59 000 on 1 July 2019, what was the gain or loss on disposal? A

Loss of $21 000

B

Loss of $59 000

C

Loss of $61 000

D

Loss of $13 000...