On 1 Jul 2020, Eileen, a small-scale trading company, has made a deal with a local dental clinic to supply dental floss products. Eileen was very excited since this clinic has various branches in the state whereby, she could anticipate a bigger volume of orders from this clinic. Since Eileen is a new supplier to this dental clinic, they have come to an agreement whereby Eileen will supply 120 units of dental floss per month for an agreed selling price of RM16 per unit commencing July 2020. This agreement is only for 1 year. Eileen will incur additional costs in the form of distribution expenses of RM 20 for each delivery to the clinic. To satisfy the agreement, Eileen had bought the dental floss as follows: T T Date Quantity (unit) Unit Cost (RM) Jul 2020 400 12 Sep 2020 450 14 Nov 2020 400 17 Feb 2021 270 15 May 2021 180 14 It has been the industry practice to value their inventories using the weighted average method. Hence, as a newcomer in this business venture, Eileen follows the industry practice. Required: (a) Calculate the value of dental floss inventory on 30 June 2021 using the perpetual method. (Show your calculations to the nearest 2 decimal places).

On 1 Jul 2020, Eileen, a small-scale trading company, has made a deal with a local dental clinic to supply dental floss products. Eileen was very excited since this clinic has various branches in the state whereby, she could anticipate a bigger volume of orders from this clinic. Since Eileen is a new supplier to this dental clinic, they have come to an agreement whereby Eileen will supply 120 units of dental floss per month for an agreed selling price of RM16 per unit commencing July 2020. This agreement is only for 1 year. Eileen will incur additional costs in the form of distribution expenses of RM 20 for each delivery to the clinic. To satisfy the agreement, Eileen had bought the dental floss as follows: T T Date Quantity (unit) Unit Cost (RM) Jul 2020 400 12 Sep 2020 450 14 Nov 2020 400 17 Feb 2021 270 15 May 2021 180 14 It has been the industry practice to value their inventories using the weighted average method. Hence, as a newcomer in this business venture, Eileen follows the industry practice. Required: (a) Calculate the value of dental floss inventory on 30 June 2021 using the perpetual method. (Show your calculations to the nearest 2 decimal places).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On 15 January 2021 Mrs D South decided that she would buy the different types of cables and other fittings necessary for the services she renders and keep it in SA Stores’s inventory. Clients could then buy the necessary cables and fittings from SA Stores and Mrs South could advise them on what is needed for a specific service rendered. SA Stores would receive a 20% discount if the entity buys in bulk from SA Wholesalers. Mrs South paid for the order placed by way of an internet transfer from the business bank account. The source document to be used to record this transaction is a/an ... . Select one: a. original cash invoice b. duplicate receipt c. cash register roll d. duplicate tax invoice
PT NUSA JAYA is considering setting up several branches to help sell its product line. As an experiment the company set up a branch in Bandung on year 2017 and has been operating for 3 years. During 2020 PT Semerbak sends inventory at Rp 600,000,000 and charge branches at Rp 900.000.000. On December 31 2020, the branch still has RP 180.000,000 supplies purchased by the head office for Rp 120.000.000. The following balances are reported in the trial balance for the head office and branches as of December 31, 2020 (in IDR 000) account Kas Accounts Receivable Preparation Land Building & Equipment Investment in Cab Bandung Dividends announced Cost Of Goods Sold Depreciation Expense Other expenses Accumulated Depreciation Equity Debt Debt Bonds Common Stock Head Office Retained Earnings Unrealized Intra-Company Profit Sales Bandung Branch Profit Intra-Company Profit Realized total Head Office Debit 600.000 700.000 1.100.000 800.000 7.000.000 4.300.000 200.000 2.400.000 300.000 200.000…
Beginning the year 2020, the ABC Company began marketing its phone. Each phone sells for P50,000. To promote and expedite sales of this product, the management of ABC is offering one proof of purchase seal for a special slim transparent case to each customer for every unit of Samsung phone. ABC estimates that out of the units sold during 2020, only 60% of the proof of purchase seals will be redeemed. Sales of phone during 2021 totaled P50 million. For that year, 625 special slim transparent cases were purchased by the company at a total cost of P750,000. These 625 special slim transparent cases have a total sales value of P1,250,000. A total of 320 special slim transparent cases were distributed to customers during the year 2020. How much is the unearned revenue for unredeemed premiums reported in ABC's December 31, 2020 statement of financial position?
Ayayai Inc. sells prepaid telephone cards to customers. Ayayai then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Ayayai sells $4,100 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 55% in February, 25% in March, and 20% in April. The total payment by Ayayai for TeleExpress lines over the 3 months is $3,000.Indicate how much income Ayayai should recognize in January, February, March, and April. (If answer is 0, please enter 0. Do not leave any fields blank.) January income February income March income April income
National Restaurant Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a machine that makes sorbet to its line of ice cream making machines. Management will negotiate the purchase price of the sorbet machine with its Swedish manufacturer. Management of National Restaurant Supply believes the sorbet machine can be sold to its customers in the United States for $4,950. At that price, annual sales of the sorbet machine should be 100 units. If the sorbet machine is added to National Restaurant Supply’s product lines, the company will have to invest $600,000 in inventories and special warehouse fixtures. The variable cost of selling the sorbet machines would be $650 per machine. Required: 1. If National Restaurant Supply requires a 15% return on investment (ROI), what is the maximum amount the company would be willing to pay the Swedish manufacturer for the sorbet machines? 2. The manager who is flying to Sweden…
Marquette has an opportunity to sell its product through an online retailer. To begin selling through this online platform, they are required to ship 2,000 units to the retailers’ order fulfillment warehouse. The other condition of this offer is that they pay a one-time vendor marketing fee of $5,000. To get the units to the fulfillment warehouse by the deadline Marquette will need to pay for expedited shipping at a cost of $10 per unit. What is the minimum price Marquette should charge the retailer for this initial order of 2,000 units? (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)
Your client is Shannon Johnstone. After two years of testing the heating and cooling mats he developed for dogs, Shannon registered the business name ‘Warm or Frosty Pet Mats’ on 1 July 2020. Shannon projects his sales for the year ended 30 June 2021, excluding GST, to be the following: Sales to pet stores and vet clinics in Australia, $70,000; Export sales to pet stores and vet clinics in New Zealand, $12,000. REQUIRED: Based on the projected sales, advise Shannon Johnstone whether he was required to register for GST on 1 July 2020. Explain why a business would voluntarily elect to register for GST where the projected turnover is less than the registration threshold.
MARYJANE, IN., a grocery business, operates a customer loyalty program. MARYJANE grants its program members points when they spend a specified amount of purchases. The points have no expiry date, and they can use the points for further purchases. During 2021, the customers earned 80,000 points, but management expects that 75% of these points will be redeemed. The stand-alone selling price of each loyalty point is estimated at Php 20. The sales during 2021 amounted to Php 6,800,000 on stand-alone selling price. On December 31, 2021, 28,800 points have been redeemed. In 2022, the management revised its expectations and now expects 85% of the points to be redeemed. In 2022, the 12,000 points were redeemed. a. 1,367,481 b. 1,200,000 c. 1,020,000 d. 1,295,238 What amount of the transaction price should be allocated to the groceries?
JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow,…
Please show the solution in good accounting form. Thank you! Dominic Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the…
Ride Up Ltd. (“Ride Up”) is an outdoor sports and other gear manufacturer located in Johannesburg CBD. The entity’s financial yearend is 28 February. Although Ride Up has always purchased tents which they buy from an overseas supplier, the machinery required to produce high-quality tents has recently been made available to the South African market at affordable prices. Consequently, Ride Up is considering purchasing the required machine (Machine 10XP) on 1 March 2021, to manufacture the tents themselves The supplier of Machine 10XP is selling the machine for R 5 080 000. Alternatively, the machine can be leased from them at R770 000 payable annually in arrears. This is to allow the manufacturers to generate the required funds from sales of the tents during the year before being required to make the payment. Should Ride Up purchase the machine, they will qualify for a section 12C Income tax deduction of 40% in the first year and 20% thereafter. Ride Up will however not be able to…
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid s0.10 per part, given a forecast you provided of 100,000 parts in year 1, 300.000 in year 2; and 500.000 in year 3. Shipping and handiling of parts from the supplier's factory is estimated at $0.02 per unit. Additional inventory handling charges should amount to $0.004 per unit. Finally, administrative costs are estimated at $10 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.05 per unit. Direct labor is estimated at $0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.013 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $40,000. Finally, management has insisted that overhead be allocated if the parts are made in-house…