Accounting - A stock control problem
A stock control problem
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Lou Lockwood has a shop selling electronic items, including CD Walkmans.
His knowledge of accounting is limited and he only keeps a "list" of his
transactions involving Walkmans.
All Walkmans are bought on credit and sold for cash.
He provides the following information:
1 Oct
4 Walkmans on hand (cost $70 each)
6
3 Walkmans bought on credit (cost $72 each)
10
2 Walkmans sold (cash) for $100 each (1 @ $70, 1 @ $72)
13
1 Walkman withdrawn for owner's personal use ($72)
18
1 Walkman returned by a disgruntled buyer (cost $70)
20
3 Walkmans sold for $100 each (3 @ $70)
22
6 Walkmans bought on credit (cost $72 each)
24
1 Walkman used for advertising (1 @ $72)
31
2 Walkmans sold for $100 each. (2 @ $72)
A physical stock take on 31 October revealed 4 Walkmans (1 @ $70, 3 @ $72)
on hand.
Note: The bracketed amounts will be used for identified cost.
View the word document for solution to stock control problem.
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Noted.
Understood up to a point but will review the information to gather it all in.
It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain
A stock control problem
Accounting -> A stock control problem A stock control problem Lou Lockwood has a shop selling electronic items, including CD Walkmans. His knowledge of accounting is limited and he only keeps a "list" of his transactions involving Walkmans. All Walkmans are bought on credit and sold for cash. He provides the following information: 1 Oct 4 Walkmans on hand (cost $70 each) 6 3 Walkmans bought on credit (cost $72 each) 10 2 Walkmans sold (cash) for $100 each (1 @ $70, 1 @ $72) 13 1 Walkman withdrawn for owner's personal use ($72) 18 1 Walkman returned by a disgruntled buyer (cost $70) 20 3 Walkmans sold for $100 each (3 @ $70) 22 6 Walkmans bought on credit (cost $72 each) 24 1 Walkman used for advertising (1 @ $72) 31 2 Walkmans sold for $100 each. (2 @ $72) A physical stock take on 31 October revealed 4 Walkmans (1 @ $70, 3 @ $72) on hand. Note: The bracketed amounts will be used for identified cost.
Course is effective and preferable to apply in the business.
Inventory, inventory
not done yet
What is stock recording and valuation?
done