Last Question... How the **** do you get cost of sales?

[LFTM]

What did you guys write for the rent revenue ledger account (was 3 marks)
I was a little clueless but did something like
DR P&L summary 60k
CR Prepaid rent revenue 5k
CR bank 55k

o.0..

Same i think it's wrong

[LFTM]

What'd you guys write for improving STO without changing Gross Profit?

I wrote improve the stock mix, get rid of slow moving stock. Then i put reduce the amount of stock on hand by doing just in time ordering.


Are these right, my second point is quite dodgy.

[mmmmm]

Can we do 'decrease cost price by finding a cheaper supplier'?

[Stormer]

Can we do 'decrease cost price by finding a cheaper supplier'?

But how woudl that change the STO?

[LFTM]

What question was this?

[mmmmm]

Can we do 'decrease cost price by finding a cheaper supplier'?

But how woudl that change the STO?

Well it would decrease stock control.... wouldn't it? :S

[gem]

was the principle reporting period for that theory question? and also for the rent revenue ledger account was it P+L 60,000 on debit side with $10,000 accrued with 50,000 cash at bank on credit side? did everyone get 21.20 for the price of each stock? $20 + $1 plus 200/1000?

[Stormer]

Can we do 'decrease cost price by finding a cheaper supplier'?

But how woudl that change the STO?

Well it would decrease stock control.... wouldn't it? :S
[/quote
Fair point. But wouldn't it change Cost of Sales?

[gem]

the answer is remove slow moving lines and introducing faster moving stock

[Yitzi_K]

Can we do 'decrease cost price by finding a cheaper supplier'?

No, because it specifically said without changing the Gross Profit Ratio.

[Stormer]

I said order less stock on average and reorder the stock around so that the slow moving lines are at the front ?

[Yitzi_K]

the answer is remove slow moving lines and introducing faster moving stock

I said buying less stock at a time from supplier, and hiring more staff to sell stock quicker.

[gem]

was the principle reporting period for that theory question? and also for the rent revenue ledger account was it P+L 60,000 on debit side with $10,000 accrued with 50,000 cash at bank on credit side? did everyone get 21.20 for the price of each stock? $20 + $1 plus 200/1000?

? Also do people think the last question (5 marks) will not be included?

[eeps]

According to my teacher, you'd be awarded full marks since you aren't given the cost price.

I just had:

Prepaid Sales Revenue CR. 400
Sales Revenue DR. 5000
GST Clearing DR. 500
Debtor - Motel Vegas CR. 5100
Debtors Control CR. 5100

I didn't included Cost of Sales/Stock Control in the General Journal.

[LFTM]

According to my teacher, you'd be awarded full marks since you aren't given the cost price.

I just had:

Prepaid Sales Revenue CR. 400
Sales Revenue DR. 5000
GST Clearing DR. 500
Debtor - Motel Vegas CR. 5100
Debtors Control CR. 5100

I didn't included Cost of Sales/Stock Control in the General Journal.

I only got 3 of those entries correct.