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  • Note di Apprendimento
  • Revisione degli argomenti
    Tashika B.
    US
    Tashika B.

    Who controls perpetual stock?

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    The introduction of a new computer system has helped minimise the time spent recording daily transactions. Hayley has been unsure of a number of transactions and they have not 'gone through' the system. For instance, some of her stock has been used for wine tastings as part of her new marketing program. Hayley has also taken wine home for her personal use and she donated two bottles of her favourite wine to a local charity. Old habits die hard and at the end of the accounting period of one month Hayley carried out a physical stock take on her favourite wine. Allowing for the transactions above she is sure that there are three bottles less than expected in her stock card.

    Alice B.
    GQ
    Alice B.

    Stock loss may occur if: staff or customers steal, over invoicing which occurs in a business, wastage,obsolescence and items exceeding their use by date and the occurrence of disasters like fire may also lead to stock loss.

    Hermina S.
    LC
    Hermina S.

    The advantages to applying FIFO method: it is easy to apply and any discrepancies regarding the calculation of income is not possible.

    Hermina S.
    LC
    Hermina S.

    Interesting topic

    Hermina S.
    LC
    Hermina S.

    Can anyone who has done the assessment tell me where do i type it or are we suppose to address/email it to anyone in particular? thank you!!!

    Morne V.
    ZA
    Morne V.

    The second pursuit related to the organization's interests in moving towards a more perpetual.

    Sunday O.
    NG
    Sunday O.

    perpetual stock

    Odongo M.
    UG
    Odongo M.

    Accounting -> Case study - perpetual stock Case study - perpetual stock Hayley Badge has recently converted from using the physical stock method to the perpetual stock approach. When asked why by her friends Hayley was at a loss to explain, other than that she no longer has to spend one Sunday each month counting stock in her licensed grocery. This will help 'free up' her social life. The introduction of a new computer system has helped minimise the time spent recording daily transactions. Hayley has been unsure of a number of transactions and they have not 'gone through' the system. For instance, some of her stock has been used for wine tastings as part of her new marketing program. Hayley has also taken wine home for her personal use and she donated two bottles of her favourite wine to a local charity. Old habits die hard and at the end of the accounting period of one month Hayley carried out a physical stock take on her favourite wine. Allowing for the transactions above she is sure that there are three bottles less than expected in her stock card. The particular wine has experienced a fall in selling price as new, fruitier wines have come onto the market. Hayley bought the 'Tabletop' brand for $8 per bottle plus $1 per bottle licence fee. It now sells for $7.00 per bottle, including the licence fee of $1.50. Hayley has heard about the 'lower of cost and net realisable value on an item by item rule' from a friend and wonders if it applies in this situation. She also has a number of questions that she seeks to ask you regarding other aspects of stock control. Required Hayley provides you with a partly completed stock card along with some diary entries. You are required to complete the stock card. Stock card Item: Tabletop Diary entries relating to 'Tabletop' wines. 6 bottles used for wine tastings 2 bottles donated to charity 4 bottles used for personal imbibing 3 bottles 'missing' The diary entries are to be recorded on 30 November. It may be assumed that the 'lower of cost and net realisable value (NRV) rule on an item by item basis' will apply. You are to record this event in the stock card. Hayley would also like the details contained in the stock card to be recorded in the 'stock control account'. Hayley asks a series of questions regarding stock management: Hayley is unsure whether to use FIFO or identified cost in valuing stock. Answer the following questions. explain what each of these terms mean provide two advantages of using FIFO provide two advantages of using identified cost In addition Hayley provides you with a list of transactions for December and asks you to prepare separate stock cards using each method. It is important that you have the correct balance from the stock card for the month of November. Transactions 3 Dec. 20 bottles of 'Tabletop' bought for $8, Invoice 890 6 6 bottles sold (cost $7) Invoice 091 9 10 bottles sold (cost $8) Invoice 092 14 2 bottles returned in (cost $8) Credit note 033 22 Drawings 3 bottles (cost $7) 27 Donations 2 bottles (cost $8) General journal entries for above transactions and other possibilities: General journal Advertising 54 Stock control 54 Wine tastings Donations 18 Stock control 18 2 bottles donated to charity Drawings 36 Stock control 36 Stock withdrawn for personal use Stock loss 27 Stock control 27 Stock revealed missing by physical stock take Stock write down 22 Stock control 22 Stock write down Stock control xxx Capital xxx Owner contributes stock to the business View the text document for solution to November and December Stock card entries.

    Manish K.
    NP
    Manish K.

    Course is fruitful and understandable.

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