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:
4 Walkmans on hand (cost $70 each)
3 Walkmans bought on credit (cost $72 each)
2 Walkmans sold (cash) for $100 each (1 @ $70, 1 @ $72)
1 Walkman withdrawn for owner's personal use ($72)
1 Walkman returned by a disgruntled buyer (cost $70)
3 Walkmans sold for $100 each (3 @ $70)
6 Walkmans bought on credit (cost $72 each)
1 Walkman used for advertising (1 @ $72)
2 Walkmans sold for $100 each. (2 @ $72)
A physical stock take on 31 October revealed 4 Walkmans (1 @ $70, 3 @ $72)
_Note: The bracketed amounts will be used for identified cost._
View the word document for solution to stock control problem.
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