BINDURA UNIVERSITY OF SCIENCE EDUCATION

FACULTY OF COMMERCE

NAME REGISTRATION NUMBER

KACHEDWA KELVIN B192372B kevykachedwa@gmail.com

NYAHANGARE WELLINGTON B190392B wnyahangare@gmail.com

CHIKWENENGERE WAYNE B192038B waynewizyk@gmail.com

MAIBVISE SUCCESS B190165B successmaibvisy@gmail.com

MATASHU VONGAI B191338B vongaimatashu@gmail.com

CHINAKE AUGUSTINE B190754B Chinakeaugastine@gmail.com

DEAR VONGAI B190728B vongaidear@gmail.com

MUKOYI JOYCE B193283B Jmukoyi19@gmail.com

GAMBARA MILLANDAH B191574B mimieh72@gmail.com

MBERENGWAH PINIEL B190141B tafadzwamberengwah@gmail.com

MUTANGABENDE LEON B193321B lyonemtanca@gmail.com

GUTSA CHIDOCHASHE B193319B Chidochasheaisha@gmail.com

1i)First-in-First-out perpetual
Date Purchases Sales Inventory Balance
2017
June 1 10000@2.40
4 5000@2.60 5000@2.60
15000@2.60
5 4000@4 (4000)
11000@2.60
12 3000@4.10 (3000)
8000@2.60
13 3000@2.50 3000@2.50
11000@2.50
19 4000@4.50 (4000)
7000@2.50
26 3000@4.30 (3000)
4000@2.50
30 4000@2.80 4000@2.80
8000@2.80
31 3000@4.60 (3000)
5000@2.80

Closing inventory=5000kg*$2.80

=$14000

ii)Weighted average cost(AVCO) periodic

Date Purchases Sales Inventory Balance

2017
June 1 10000@2.40
4 5000@2.60 5000
15000
5 4000@4 (4000)
11000
12 3000@4.10 (3000)
8000
13 3000@2.50 3000
11000
19 4000@4.50 (4000)
7000
26 3000@4.30 (3000)
4000
30 4000@2.80 4000
8000
31 3000@4.60 (3000)
5000
Total purchases units=22000kg

Total purchases amount=$55700

Average cost=$55700/22000

=$$2.53

Closing inventory=5000kg*$2.53

=$12650

iii) Weighted average cost (AVCO) perpetual

Date 2017 Purchases Sales Units/kg Price $ Total value $

June 1 10 000 2.40 24 000
4 5000@2.60 5 000 2.60 13 000
15 000 2.47 37 000
5 4000 (4 000)
11 000 2.47 27 170
12 3000 (3 000)
8 000 2.47 19 760
13 3000@2.50 3 000 2.50 7 500
11 000 2.48 27 260
19 4000 (4 000)
7 000 2.48 17 360
26 3000 (3 000)
4 000 2.48 9 920
30 4000@2.80 4 000 2.80 11 200
8 000 2.64 21 120
31 3000 (3 000)
5 000 2.64 13 200

Closing inventory=5 000kg*2.64

=$13 200

2a) Shungu Pvt Ltd Statement of Profit of Loss and other Comprehensive income for the year
ended 31 December 2016

$ $
Sales
Less :Returns inwards
Turnover

Less cost of goods sold

Opening inventory
Add :purchases

Less :returns outwards

Less :closing inventory

Cost of goods sold
Gross profit
Add :Discount received
Total gross profit

Less operating expenses

Discount paid
Wages and salaries
Telephone and postage
insurance
Rent and rates
Motor vehicle expenses
Staff training
Teas and cleaning
Bad debts
Increase in provision for bad debts
Depreciation :buildings
: Plant and equipment
:motor vehicle

b) Statement of changes in equity for the year ended 31 December 2016

$
 3) M Ltd departmental income statement for the year ended 30 April 2017

Furniture Kitchen Clothing Total

$ $ ware $ $ $ $
$
sales 912000 696000 552000 2160000
Less cost of goods sold
Opening inventory 350000 306000 94000 (750000)
Add purchases 491000 406000 402000 (1299000)
841000 712000 496000 (2049000)
Less closing inventory (394000) (222000) (65000) 481000
Cost of goods sold (447000) (490000) (431000) (1368000)
Gross profit 465000 206000 121000 792000

Less operating expenses

Salaries 58000 42000 60000 (160000)
Rent 37600 32900 23500 (94000)
Heat and lighting 30000 26250 18750 (75000)
General expenses 24800 21700 15500 (62000)
Depreciation: premises 12800 11200 8000 (32000)
: Fixtures and fittings 45000 30000 27000 (102000)
(208200) (164050) (152750) (525000)
256800 41950 (31750) 267000