exam question

[yaya666]

can someone please do this question and show me working out? i know the answers but havent been able to understand how they are derived

specifically part c !!!!

how do you get the stock loss

[SirHoothoot]

Use lower of cost and NRV. The cost price is the selling price per unit plus any other costs incurred bringing the item in to be ready to be sold. So for the top two you use the cost price (whatever + the delivery IN cost), while for the bottom you use the NRV which is 70-delivery OUT. Stock loss is just 190*(32-30).

[Oxmacro]

can someone please do this question and show me working out? i know the answers but havent been able to understand how they are derived

specifically part c !!!!

how do you get the stock loss

Hey!
In terms of the stock loss, you will need to look at the difference between the quantity at the stocktake and the quantity as per the stock card; specifically The Prince item had 32 on the card and revealed 30 were actually on hand by means of the stocktake. As a result, we need to make the entry to recognise the accurate level of stock on hand. With the item at $190 per unit, we will need to recognise that the 2 are lost, resulting in the stock loss of $380. (2 x190= 380)
Hope this helped!

[dan0038]

Use lower of cost and NRV. The cost price is the selling price per unit plus any other costs incurred bringing the item in to be ready to be sold. So for the top two you use the cost price (whatever + the delivery IN cost), while for the bottom you use the NRV which is 70-delivery OUT. Stock loss is just 190*(32-30).

Its not minus delivery out 0.0 Its the coffee pods that is the $10 direct selling expense. The delivery out is paid by the customer so its not a direct selling expense incurred by the business

[RoyalLegacy]

Hey yaya666!

I'd highly recommend watching this video (very clear explanation) for 10c.
https://www.youtube.com/watch?v=4awb0MCYk2A&list=PLzRRrjf0oa8pZg8GyT7TqGrebSuRblFmV&index=26
FYI: It shows the steps to take on working out questions in 2014 and 2015 VCAA Accounting exams.

All the best in your upcoming exams!