Question
In: Accounting
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula.
|
Date |
Explanation |
Supplier |
Serial # |
Unit Cost/Price |
|
Aug. 1 |
Beginning inventory |
Yamaha |
YH6318 |
$1,800 |
|
Kawai |
KG1268 |
1,800 |
||
|
Kawai |
KG1520 |
900 |
||
|
Suzuki |
SZ5716 |
1,400 |
||
|
Suzuki |
SZ5828 |
1,900 |
||
|
Steinway |
ST8411 |
2,900 |
||
|
Steinway |
ST0944 |
2,500 |
||
|
10 |
Sales |
Suzuki |
SZ5828 |
3,000 |
|
Kawai |
KG1268 |
2,100 |
||
|
15 |
Purchases |
Yamaha |
YH4418 |
1,600 |
|
Yamaha |
YH5632 |
1,900 |
||
|
18 |
Sales |
Yamaha |
YH4418 |
2,400 |
|
Steinway |
ST8411 |
4,000 |
||
|
22 |
Purchases |
Suzuki |
SZ6132 |
2,100 |
|
Suzuki |
SZ6148 |
1,900 |
||
|
26 |
Sales |
Suzuki |
SZ6132 |
3,200 |
|
Yamaha |
YH6318 |
2,800 |
||
|
Yamaha |
YH5632 |
2,900 |
Instructions
(a) Determine the cost of goods sold and ending inventory for the month of August.
(b) Determine the gross profit for the month of August.
(c) Discuss whether the specific identification cost formula is likely the most appropriate cost determination cost formula for the Piano Studio. Explain why this is, or is not, the case.
Apply perpetual FIFO and average cost; compare effects.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you
with the following information with respect to its piano inventory
for the month of August. The company uses the specific
identification cost formula.
Date
Explanation
Supplier
Serial #
Unit Cost/Price
Aug. 1
Beginning inventory
Yamaha
YH6318
$1,800
Kawai
KG1268
1,800
Kawai
KG1520
900
Suzuki
SZ5716
1,400
Suzuki
SZ5828
1,900
Steinway
ST8411
2,900
Steinway
ST0944
2,500
10
Sales
Suzuki
SZ5828
3,000
Kawai
KG1268
2,100
15
Purchases
Yamaha
YH4418
1,600
Yamaha
YH5632
1,900
18...
A. You are provided with the following information form the accounts of BBS Ltd for the...
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000 Cost of Goods Sold 35 000 Amount received in advance for
services to be performed in August 2019 9 500 Rent expenses for
year ended 30 June 2019 9 000 Rent Prepaid for two months to 31
August 2019 1 200 Doubtful debts expenses 1 200 Amount provided in
2019 for employees’ long-service leave entitlements...
A. You are provided with the following information form the accounts of BBS Ltd for the...
A. You are provided with the following information form the
accounts of BBS Ltd for the year ending 30 June 2019
Cash Sales
950 000
Cost of Goods Sold
35 000
Amount received in advance for services to be performed in
August 2019
9 500
Rent expenses for year ended 30 June 2019
9 000
Rent Prepaid for two months to 31 August 2019
1 200
Doubtful debts expenses
1 200
Amount provided in 2019 for employees’ long-service leave
entitlements...
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Variable manufacturing costs per unit
48
Fixed manufacturing costs per annum
250,000
Variable marketing, distribution and administration
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16
Fixed non-manufacturing costs per annum
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$20,000
Accounts Payable
$40,000
Accounts receivable
100,000
Bills Payable (suppliers)
20,000
Bills Receivable (suppliers)
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Interest paid
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Operating expenses
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Dividends received
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PART A
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You are asked to identify how each of these items is shown in the
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(a)
gain on revaluation of available-for-sale investments
(b)
dividends paid during the year
(c)
revaluation gain on building (not reversing any previous
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(d)
transfer to dividend equalisation reserve
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Unsecured notes issued
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Monthly sales in units 3,000 6,000 9,000
Cost of food sold 4,500 9,000 13,500
Payroll costs 3,500 5,000 6,500
Supplies 600 1,200 1,800
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Building rent 1,000 1,000 1,000
Depreciation 200 200 200
Total $11,660 $19,820 $27,980
Required:
Identify each cost as variable, fixed or mixed?
Develop an equation to estimate total...
Use the following information to answer questions 40 to 41: CDE Ltd has provided the following...
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CDE Ltd has provided the following budgeted Income
Statement extract for the July-September quarter in
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July
August September
$,000
$’000 $’000
Sales (all on credit) 85 88 91
Purchases (43) (45) (47)
Depreciation expense (5) (5) (5)
Electricity expense (6) (6) (6)
Other expenses (25) (25) (25)
You are also given the following additional
information:
All sales are collected in cash the month after
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All purchases are made...
Piano Ltd has a 30% interest in a joint venture, Mandolin Ltd, in which it invested...
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All the identifiable assets and liabilities of Mandolin
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Sheffield Inc. has provided you with the following information. This company purchases its inventory from a...
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This company purchases its inventory from a supplier for cash and
has only cash sales. Sheffield uses the average cost formula in a
perpetual inventory system. Increased competition has recently
reduced the price of the product.
Date
Explanation
Units
Unit
Cost
Unit Price
Apr.
1
Beginning inventory
50
$78
6
Purchases
110
89
8
Sales
(130
)
$120
15
Purchases
120
68
20
Sales
(120
)
102
27
Purchases
20
59...
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