VCE Accounting Question Thread!

[One Step at a Time]

Hi guys,
SAC on Friday and I'm very very confused...

For the BALANCE column of the stock card, what order do we write the stock in? From lowest to highest?

I'm stuck on the transaction of the 7th July in the question below. In the IN column, there is 1 unit of stock at $2200 each and 1 unit of stock at $2100 each.
I got 1 unit of stock at $2200 and 15 units of stock at $2325 each in the BALANCE column on 5/7 (when the last stock related transaction occurred).
So would there be 2 units of stock at $2200 each (combine the two) or do I record each unit of stock at $2200 each separately (separate)?

QUESTION:
Ramesh Traders buy and sell Ultra HD TVs, use product costing and prepare reports monthly. The
following transactions occurred during July 2015:
3rd July, purchase of 15 ultra HD TVs from HiTech Enterprises, $37 950 including GST. Invoice 87.
4th July, delivery of 15 units from HiTech Enterprises, total $375 plus GST, Invoice 17. Jet Couriers.
5th July, sold 6 ultra HD TVs to Just TVs, at a unit selling price of $5 000 plus GST, Invoice 211.
7th July, return of 2 units from Just TVs, Credit Note 4. Full credit given.
30th July, took 1 ultra HD TV from stock for use in the boardroom (Boardroom TV). Memo 9.
30th July, Invoice 567 from Handy Harry to install ultra HD TV in the boardroom, $300 plus GST.
31st July, stocktake: 18 units, Memo 10.

Appreciate everyone's help!! Thanks 

[One Step at a Time]

Hi everyone

I have another question I was hoping I could get some help with since my SAC is tomorrow! It's about product costing 

What does the "logically allocated" bit of the definition mean? Does this exclude numbers with decimals? e.g If the expense calculated for each unit cost of stock is $9.09, (the total cost of goods expense is $300), do we still allocate it to each unit cost of stock or do we count it simply as a cost of goods sold expense (not part of cost of sales)?

[The Usual Student]

Hi everyone

I have another question I was hoping I could get some help with since my SAC is tomorrow! It's about product costing 

What does the "logically allocated" bit of the definition mean? Does this exclude numbers with decimals? e.g If the expense calculated for each unit cost of stock is $9.09, (the total cost of goods expense is $300), do we still allocate it to each unit cost of stock or do we count it simply as a cost of goods sold expense (not part of cost of sales)?

so logically allocated semantically means,
You can take the overall value Eg 900 bucks, and trace it to each individual unit. So if we paid 900 bucks for transport, but we transported 100 rubber ducks and 100 rubber snakes. You can't trace the overall 900 to just ONE item of stock since; for instance, the rubber snakes might take up more space and hence it is more expensive to transport oooorrrrr the rubber ducks are heavy and hence incur more cost when transported.Due to this we can't really be sure how much it cost us to transport 100 rubber ducks or 100 rubber snakes by themselves as we don't know how much of the 900 was incurred just because of the rubber ducks ( eg it could be 450 or 500 or 700 out of 900 ) or just because of the rubber snakes ( eg 400 or 550 or 800 out of the 900). Hence it isn't logically tracable

However, if you had just rubber ducks, then you know the 100 rubber ducks cost 900 dollars to transport and you can trace it to each individual unit of stock (1 rubber duck = 9 bucks to transport)

I asked my teacher about decimals and also asked an examiner, i got two replies lol
My teacher: DO NOT ROUND THE NUMBERS AT ALL, the cents are no relevant and should be discluded from product costs as they are not material, include them as other expenses or whatever. However, the full amount eg ( 9.90 per stock to be tranposrted  but 990 for 100 stock transported ) should be kept as 990 so the product cost is 990. SO make sure you mutliply it by the overall amount to make sure it doesn't have decimals in its final answer.
Sorry i can't really answer the second questions cause there are a few opinions i am hearing. I can't recall what the examiner said but he disagreed with above
ASK YOUR TEACHER ASAP

[One Step at a Time]

Thanks so much the Usual Student, you always save the day 

My teacher has disappeared these few days and isn't answering his emails either, so I'll go with what you said! Just have to decide between the examiner's or your teacher's words 

For stock cards, I'm a bit confused about the recording process.
e.g. There is are 5 units of stock at $1000 each (total $5000) on 1/2/16 in the BALANCE column.

The next day, then there is a transaction e.g. sales returns which leads to 1 unit of stock coming in at $1200 each (total $1200) and 2 units of stock coming at $1000 each (total $2000 each). It's recorded in the IN column in that order (stock at $1200 first, then stock at $1000).

What do we write in the BALANCE column now? Do we write 5 at $1000 (total $5000), then 1 at $1200 (total $1200) and lastly followed by 2 at $1000 (total $2000)? Or do we combine the stock at $1000? Or something completely differently?

Thanks again, hope that made some sense

[The Usual Student]

Thanks so much the Usual Student, you always save the day 

My teacher has disappeared these few days and isn't answering his emails either, so I'll go with what you said! Just have to decide between the examiner's or your teacher's words 

For stock cards, I'm a bit confused about the recording process.
e.g. There is are 5 units of stock at $1000 each (total $5000) on 1/2/16 in the BALANCE column.

The next day, then there is a transaction e.g. sales returns which leads to 1 unit of stock coming in at $1200 each (total $1200) and 2 units of stock coming at $1000 each (total $2000 each). It's recorded in the IN column in that order (stock at $1200 first, then stock at $1000).

What do we write in the BALANCE column now? Do we write 5 at $1000 (total $5000), then 1 at $1200 (total $1200) and lastly followed by 2 at $1000 (total $2000)? Or do we combine the stock at $1000? Or something completely differently?

Thanks again, hope that made some sense

i assume those values are cost prices? If so,
I would not combine the two 1000 packages, assuming the sales return occurred after the 1500 one. But that is a gut feeling, don't know exactly. I would go with the first option.

[One Step at a Time]

Thanks so much the Usual Student  Sometimes I feel like it's just you and I on this forum haha 

Luckily this didn't appear on the SAC  ! 

[val265]

Hey Guys
Can someone pls help me with these questions

[One Step at a Time]

Hi val 265 

Not too sure if these answers are correct, so take them with a grain of salt! 

1. Stock cards do not only show the movement of stock into the business (recorded in the Purchases Journal for credit purchases of stock, Cash Payments Journal for cash purchases of stock and the General Journal for stock gain and purchase returns). They also show the outflow of stock from the business e.g sales, sales returns and stock loss. Stock cards are also used to record stock write-downs.

2. a) Look at the Cost of Sales column in the Cash Receipts Journal and the Sales Journal, and the entries that affect Cost of Sales in the General Journal.
b) Look at the OUT column of the stock card. Add all OUTS not inc. the memos or the credit notes less credit notes in the IN column.

[One Step at a Time]

Hi everyone

Having some trouble with these two questions (no idea how to approach them/ get started)!

The business has a 6 month reporting period. The following data is provided.
Balances at 31/12/19: Accrued wages $700 & Prepaid sales $4500

Income Statement Data for 6 months ending 30/6/20: Wages $26300 & Sales $107000

Cash Flow Statement for 6 months ending 30/6/20: Accrued wages $700 & Wages $25 000 & Prepaid Sales $18700 & Sales $90000

What are the balances of accrued wages and prepaid sales at 30/6/20?

[qweasdzxc]

Hi everyone

Having some trouble with these two questions (no idea how to approach them/ get started)!

The business has a 6 month reporting period. The following data is provided.
Balances at 31/12/19: Accrued wages $700 & Prepaid sales $4500

Income Statement Data for 6 months ending 30/6/20: Wages $26300 & Sales $107000

Cash Flow Statement for 6 months ending 30/6/20: Accrued wages $700 & Wages $25 000 & Prepaid Sales $18700 & Sales $90000

What are the balances of accrued wages and prepaid sales at 30/6/20?

Accrued wages: 26300-25000=1300 (because figure in IS includes accrued wages for this period)
Prepaid sales: 107000-90000= 17000  (all sales that aren't cash. I'm gonna assume that there are no credit sales)
17000-4500= 12500 ( this is how much of the 18700 prepaid sales that has even converted to sales)
18700-12500= 6200 (remaining balance at 30/6)
Hope this makes sense!

[xjiaa]

Hello,
I'm struggling to grasp the concept of general ledgers and I've been coping so far by memorising the templates and not actually understanding the reason for it. I'm often confused with what entries must be made and ensuring that everything is included. I have a sac this week so hoping someone could help me understand ledgers better.

Thank you!

[val265]

Hey Guys,
Just wondering what increases stock control that is cross referenced  Bank?

[The Usual Student]

Accrued wages: 26300-25000=1300 (because figure in IS includes accrued wages for this period)
Prepaid sales: 107000-90000= 17000  (all sales that aren't cash. I'm gonna assume that there are no credit sales)
17000-4500= 12500 ( this is how much of the 18700 prepaid sales that has even converted to sales)
18700-12500= 6200 (remaining balance at 30/6)
Hope this makes sense!

The accrued wages BALANCE will be (total incurred) - (total paid)
so wages incurred = 26300 - ( 700 + 25000) = 600
the end balance being 600 CR for accrued wages.
Alternatively, you can use your method and take the 1300 and minus 700 balance from it to get 600.
As long as you account for the 700 accrued wages paid.. all g.
 

[qweasdzxc]

The accrued wages BALANCE will be (total incurred) - (total paid)
so wages incurred = 26300 - ( 700 + 25000) = 600
the end balance being 600 CR for accrued wages.
Alternatively, you can use your method and take the 1300 and minus 700 balance from it to get 600.
As long as you account for the 700 accrued wages paid.. all g.

Ohh but I thought the $700 accrued wages from CFS was to pay off the $700 accrued wages at the start of the period, then it kinda cancels out and the accrued wages for this period is just $26300-$25000?

[qweasdzxc]

Hey Guys,
Just wondering what increases stock control that is cross referenced  Bank?

Cash purchase of stock.