VCE Accounting Units 3 and 4 Student CD Exercise 6.

Chapter 18 Exercise 1 - Drawings of inventory

Inventory card Valuation method: Identified cost
Date Document IN OUT BALANCE
Oct-01 Balance 0 0 5 24 120
0 0 25 26 650
2-Oct memo 54 0 2 26 52 5 24 120
0 0 23 26 598
0 0 0
0 0 0
0 0 0
b it would be completetely different, because instead of the stock that cost $26, it would decrease the inventory that cost 24$

c the two fold effect would be decrease of $52 worth of inventory under current asset, and decrease of $52 capital under owner's equity

For use in conjunction with:

VCE Accounting Units 3 and 4, fourth edition 1 of 18
© Neville Box 2006, published by Macmillan Education Australia
Chapter 18 Exercise 2 - Inventory used for advertising purposes
Inventory card Valuation method: FIFO
Date Document IN OUT
Aug-30 Inv. 415 20 90 1800 0
0 0
30-Aug Memo 85 0 2 75 150
0 1 90 90
0 0
0 0
0 0
b this entry shouldn't be recognised as drawing, it should be considered as advertising, because it advertise the business in a g

c it would be consider as expense for the business, expense is the cost of doing the business, and the cost of generating the pr
hod: FIFO
BALANCE
2 75
20 90 1950
19 90 1710
0
0
0
0
advertise the business in a good light and will likely to result the local support of the business

the cost of generating the profit, advertising provides the protential of genrating profit, which is why advertising is consider as expense
ertising is consider as expense
Chapter 18 Exercise 3 - Inventory cards to income statement
Inventory card: Standard model Valuation method: FIFO
Date Document IN OUT
Aug-22 balance 0
0
3-Aug Rec. 939 0 6 12
0
11-Aug Rec. 941 0 1 12
0 5 13
14-Aug Rec. 942 0 10 13
17-Aug Inv.3727 30 15 450
0
18-Aug Memo 34 0 1 13
0
20-Aug EFT 0 3 13
0
25-Aug Rec. 944 0 1 13
0
cost of sales 0
31-Aug inventory loss 0 4 13

c the total value of sales is 4990

d 331+466=797
on method: FIFO Inventory card: Deluxe model
OUT BALANCE Date Document
0 7 12 84 Aug-22 balance
0 25 13 325 5-Aug EFT
72 1 12 12 7-Aug Rec. 940
0 25 13 325 9-Aug inv. 3820
12 20 13 260
65 0 14-Aug Rec. 942
130 10 13 130
0 10 13 130 23-Aug Rec. 943
0 30 15 450
13 9 13 117 25-Aug eft
0 30 15 450 27-Jan rec. 944
39 6 13 78 cost of sales
0 30 15 450 31 inventory gain
13 5 13 65
0 30 15 450
331 0
52 1 13 13
30 15 450
xe model Valuation method: FIFO
IN OUT BALANCE
0 0 17 18 306
0 3 18 54 14 18 252
0 5 18 90 9 18 162
25 20 500 0 9 18 162
0 0 25 20 500
0 5 18 90 4 18 72
0 0 25 20 500
0 4 18 72 23 20 460
0 2 20 40 0
0 1 20 20 22 20 440
0 3 20 60 19 20 380
0 426 0
0 3 18 54 3 18 54
0 0 17 20 340
0 0 0
0 0 0
0 0 0
Chapter 18 Exercise 3 - Inventory cards to income statement

BELLA'S OUTDOOR FURNITURE: Income statement for month ended 31 A

Revenue $ $
sales 4990
4990

less Cost of goods sold

inventory sold 797
x x
x x
x x 797
Gross profit 4193
less inventory gain 2
Adjusted gross profit 4193
plus Other revenue

4193
less Expenses

x x
x x
x x
x x
x x
x x
x x 0
Net profit 4193
or month ended 31 August 2023
Chapter 18 Exercise 4 - Inventory cards to income statement
Inventory card: Junior hockey stick Valuation method: FIFO
Date Document IN OUT
Sep-22 balance 0 0
0 0
2-Sep eft 0 3 15 45
0 0
3-Sep inv. 943 20 17 340 0
0 0
7-Sep Rec. 295 0 2 15 30
0 2 17 34
11-Sep eft 0 3 17 51
18-Sep Rec. 298 0 4 17 68
22-Sep Memo 21 0 1 17 17
23-Sep Rec. 299 0 3 17 51
25-Sep Rec. 300 0 1 17 17
cost of sales 0 296
30-Sep inventory loss 0 6 17 102
0 0
0 0
0 0
0 0
0 0
0 0

c 87 + 118 + 85+ 60 + 122 + 105 + 32= 609

c 180+ 90+ 90+ 80+ 90+ 90 + 130= 750

hod: FIFO Inventory card: Senior hockey stick
BALANCE Date Document IN
5 15 75 Sep-22 balance
17 16 272
2 15 30 4-Sep Rec. 294
17 16 272
2 15 30 5-Sep EFT
37 17 629
35 17 595 9-Sep Rec. 296
0
32 17 544 14-Sep inv. 933 15 25
28 17 476
27 17 459
24 17 408 16-Sep Rec. 297
23 17 391
0 20-Sep eft
17 17 289
0 22-Sep Memo 21
0
0 23-Sep Rec. 299
0
0 28-Sep Rec. 301
0
cost of sales
30-Sep inventory gain
 Valuation method: FIFO
IN OUT BALANCE
0 0 9 24 216
0 0 10 23 230
0 4 24 96 5 24 120
0 0 10 23 230
0 2 24 48 3 24 72
0 0 10 23 230
0 2 24 48 1 24 24
0 0 10 23 230
375 0 1 24 24
0 0 10 23 230
0 0 10 25 250
0 1 24 24 9 23 207
0 1 23 23 10 25 250
0 2 23 46 7 23 161
0 0 10 25 250
0 1 23 23 6 23 138
0 0 10 25 250
0 2 23 46 4 23 92
0 0 10 25 250
0 3 23 69 1 23 23
0 0 10 25 250
400 0
4 24 96 4 24 96
1 23 23
10 25 250
Chapter 18 Exercise 4 - Inventory cards to income statement

HILL'S HOCKEY HIDEOUT: Income statement for month ended 30 Septemb

Revenue $ $
sales 1359
x x 1359

less Cost of goods sold

cost of sales 696
x x
x x
x x 696
Gross profit 663
less inventory loss 6 6
Adjusted gross profit 663
plus Other revenue

663
less Expenses

x x
x x
x x
x x
x x
x x
x x 0
Net profit 663
th ended 30 September 2023
Chapter 18 Case study

RANDOM ACCESS ROBOTICS: Statement of receipts and payments for the m

$
Cash receipts

0
Less: Cash payments

0
Excess of receipts over payments
Bank balance (1 October 2023)
Bank balance (31 October 2023)
s and payments for the month ended 31 October 2023
$

0
Chapter 18 Case study

RANDOM ACCESS ROBOTICS: Income statement for month ended 31 Oct

Revenue $ $
x x
x x 0

less Cost of goods sold

x x
x x
x x
x x 0
Gross profit 0
less x x
Adjusted gross profit #VALUE!
plus Other revenue
x x
#VALUE!
less Expenses
x x
x x
x x
x x
x x
x x
x x
x x 0
Net profit #VALUE!
month ended 31 October 2023