VCE Accounting Question Thread!

[Hodgeyhodgey]

Hey guys;
has anyone cone across a situation where insurance is treated as a product cost?

On most exams it's treated as a period cost because the business might order say, 3 lines of stock, but if they only order 1 type of stock and get insurance on that I don't see why it can't be a product cost.

[RossiJ]

Hey guys;
has anyone cone across a situation where insurance is treated as a product cost?

On most exams it's treated as a period cost because the business might order say, 3 lines of stock, but if they only order 1 type of stock and get insurance on that I don't see why it can't be a product cost.

I agree
whilst it would be unusual to see it as a product cost, remember that if it relates to one line of stock, can be allocated logically and then isn't an annual cost, treat it as a product cost.

[NedKelly]

Stop trollin', troll.

[RossiJ]

hey guys, i asked this in a different thread and then i saw this one...

i dont quite understand this question.

(Image removed from quote.)

these are the answers.

(Image removed from quote.)

i dont understand where all the values (3300, 5500, 2000, 1200) come from.

could anybody explain? thanks.

what exam was this again?

Work backwards.
Ok firstly, he received a deposit of 20%
so 20% of $10000 (500x20) is $2000
This is 'prepaid sales revenue'
Next you have to determine how much he actually purchased with this $2000
$2000/500 (selling price) is 4
therefore he purchased 4, so 4x300 (cost price) is $1200
NEXT
deduct these figures to determine ones in the sales journal
he purchased 15 bed (15x500) which has a total selling price of $7500
minus $2000 from this figure and you get your $5500
then do the same for cost price
15x300=4500
4500-1200=3300

Hope that helped... badly worded but meh, tricky question

[Random_Guy]

Hey guys, when giving a reason as to why Asset Turnover decreased by Net Profit Ratio decreased proportionately greater, the obvious reason is a decrease in Other Expenses, but is another reason an increase in Other Revenues? Thanks.

[nacho]

how would one treat 'insurance on getting stock to customers' ? like some insurance on freight out i guess
that'd be an 'other expense' , correct?

[mikesguns]

Something about product costs, if you purchase stock from a supplier and get it delivered from another business. If this is returned to the supplier, only the amount purchased would be returned, however would the delivery( which is now stock)  be written-down? Also ive got a question where the delivery was done by the same supplier and the whole amount was returned, so they must given credit for the delivery, which it unusual as this doesnt happen.

[nacho]

Something about product costs, if you purchase stock from a supplier and get it delivered from another business. If this is returned to the supplier, only the amount purchased would be returned, however would the delivery( which is now stock)  be written-down? Also ive got a question where the delivery was done by the same supplier and the whole amount was returned, so they must given credit for the delivery, which it unusual as this doesnt happen.

mm that's odd
has anyone done 2006 VCTA?
I'm very interested in how to do 2.2.1
their computer equipment goes up only by 4500, whereas in the invoice it's shown to have a value of 6600 (including 600 gst)
it says uve traded in $500 worth of equipment and pay $1000 deposit, i still however, dont see why they've deducted this from the worth of the computer?
(Im guessing they went: 6000 - 1000 - 500 = 4500)

[Naresh]

i have a question.

this is the background.



the question says - complete the general journal as at the end of the year ended 30 june 2005.

i was wondering how you work out the accumulated depreciation as what i get is wrong.

[RossiJ]

6700+4950=    $11,650?
If the additional equipment was purchased at the start of the reporting period?

[Naresh]

the answer is $3075

[MaddehZ]

the answer is $3075

First you have to calculate from the start of july 2004 to end of september 2004

23,000 - 10,000

= 13,000
x 0.15
/12
x 3

= 487.5

next, the period of 9 months that the equipment is worth 23,000

23,000 x 0.15 /12 x 9 = 2587.5

487.5 + 2587.5 = 3075

[MaddehZ]

hey guys, i asked this in a different thread and then i saw this one...

i dont quite understand this question.

(Image removed from quote.)

these are the answers.

(Image removed from quote.)

i dont understand where all the values (3300, 5500, 2000, 1200) come from.

could anybody explain? thanks.

what exam was this again?

Work backwards.
Ok firstly, he received a deposit of 20%
so 20% of $10000 (500x20) is $2000
This is 'prepaid sales revenue'
Next you have to determine how much he actually purchased with this $2000
$2000/500 (selling price) is 4
therefore he purchased 4, so 4x300 (cost price) is $1200
NEXT
deduct these figures to determine ones in the sales journal
he purchased 15 bed (15x500) which has a total selling price of $7500
minus $2000 from this figure and you get your $5500
then do the same for cost price
15x300=4500
4500-1200=3300

Hope that helped... badly worded but meh, tricky question

the sample answer from vcaa is wrong by the way, only recognises $550 instead of $750 which is tax fraud...srs

[Naresh]

the answer is $3075

First you have to calculate from the start of july 2004 to end of september 2004

23,000 - 10,000

= 13,000
x 0.15
/12
x 3

= 487.5

next, the period of 9 months that the equipment is worth 23,000

23,000 x 0.15 /12 x 9 = 2587.5

487.5 + 2587.5 = 3075

thank you.

[miraj753]

What exactly is the definition of efficiency?

Is it 'the ability of the business to manage its assets and liabilities'?