Task 1 Part A You are a newly recruited trainee Bookkeeper for Globe Accounting Services. You are given the task of processing the inventory purchases of one of the clients ‘Fashion Clothing Company’. Q1. Q2. Q3. Red Shirts DateRefDebitCreditBalance Black Trousers DateRefDebitCreditBalance White Shirts DateRefDebitCreditBalance Black Belts DateRefDebitCreditBalance Blue Shirts DateRefDebitCreditBalance Black T- Shirts DateRefDebitCreditBalance … Continue reading “Globe Accounting Services | My Assignment Tutor”
Task 1 Part A You are a newly recruited trainee Bookkeeper for Globe Accounting Services. You are given the task of processing the inventory purchases of one of the clients ‘Fashion Clothing Company’. Q1. Q2. Q3. Red Shirts DateRefDebitCreditBalance Black Trousers DateRefDebitCreditBalance White Shirts DateRefDebitCreditBalance Black Belts DateRefDebitCreditBalance Blue Shirts DateRefDebitCreditBalance Black T- Shirts DateRefDebitCreditBalance Q4. PART B Cost of goods sold (COGS) Inventory shortage or loss of inventory? • Prepare journal entries for both perpetual and period inventory record systems Perpetual Inventory record systemsDateDetailsDebitCredit Periodic Inventory record systemsDateDetailsDebitCredit • General ledger accounts for Inventory and Accounts receivable in the perpetual inventory system Inventory DateRefDebitCreditBalance Accounts receivable DateRefDebitCreditBalance • Show the gross profit calculation for both perpetual and period inventory record systems Gross profit calculation for perpetual inventory Gross profit calculation for periodic inventory PART C Scenario 1 Estimate the cost of a company’s inventory as at June 30 based on gross margin. Scenario 2 Calculate the net realizable value Item CodeUnitsUnit CostTotal CostUnitsMarket PriceTotal Market PriceLowe of Cost or Market Write the journal entry to record the net realizable value of the total inventory DetailsDebitCredit Scenario 3 1.Advice the client what is the applicable Australian Accounting standard for inventory valuation? 2. What inventory valuation methods / rules are allowed under the Australian standards? 3. Calculate the value of inventory using: a) – FIFO – Perpetual DateDetailsPurchasesCost of goods soldBalanceUnitsUnit Price ($)Total ($)UnitsUnit Price ($)Total ($)UnitsUnit Price ($)Total ($) – FIFO Periodic b) Weighted Average – Periodic Part D a) DateParticularsDebitCredit b) DateParticularsDebitCredit Part E a) How to calculate inventory turnover b) Develop a schedule of inventory turnover and present it using MS Word or Excel spreadsheet c) Prepare an inventory status report using MS Word or Excel spreadsheet Task 2 1. Outline organizational procedures/practices and accounting principles relevant to maintaining inventory records. 2. Describe the key steps in the process of inventory management and any relevant documentation/recording systems. 3.Identify and explain the process for entering data into systems/ledgers. 4. Explain the key features of inventory valuation rules and reconciliation processes. 5. Provide 3 methods that are included in the inventory flow assumptions? 6. What is the equation, which expresses how a company’s inventory is valued? 7. Briefly explain the purpose of inventory management and reconciliation. 8. What does the term discrepancy refer to in relation to maintaining inventory? References: R. Arnolda (2021), ‘FNSACC405 Maintain inventory records’, PowerPoint slides S1, v3.0. R. Arnolda (2021), ‘FNSACC405 Maintain inventory records’, Online Session1, 31st March 2021. R. Arnolda (2021), ‘FNSACC405 Maintain inventory records’, PowerPoint slides S2, v3.0. R. Arnolda (2021), ‘FNSACC405 Maintain inventory records’, Online Session2, 7th April 2021. Arnolda, R. (2021), ‘FNSACC405 Maintain inventory records Student Handout, version 3.0.
