Vuvuzela Limited is a retailer of soccer jerseys for various soccer
OSCAR THE TUTOR teams. Vuvuzela uses a perpetual inventory system and applies the
+27737560989 FIFO method for the valuation of merchandise. The following are
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials inventory transactions for the month of August 2024:
On 5 August 2024, one thousand one hundred and fifty (1 150)
units of jerseys that were imported from India were delivered to
the company’s premises in Newcastle, KwaZulu-Natal. The Indian
supplier had issued an invoice for R590 per jersey. The jerseys
were cleared through Richards Bay harbour and import duties and
clearing charges of R145 000 were paid in cash. The soccer
jerseys were transported by road from Richards Bay to Newcastle
at a total cost of R4 500, which was paid for in cash.
On 7 August 2024, 210 units of soccer jerseys were sold on for
cash.
On 12 August 2024, 65 units delivered on 5 August were returned
to the supplier.
On 18 August 2024, 15 units sold from the first batch were
returned by customers for a refund.
The opening balance of inventory on 1 August 2024 was 50 units at a
cost of R700 each. The selling price for the month of August
remained constant at R900 per unit.
Required:
Complete the journal entries for the above-mentioned transactions
by selecting the appropriate accounts and related data:
Debit Credit
R R
Inventory of merchandise control account 678 500
, Trade payables 678 500
Recording invoice from Indian supplier
Debit Credit
R R
Inventory of merchandise control account 4 500
Bank 4 500
Recording delivery charges
Debit Credit
R R
Inventory of merchandise control account 145 000
Bank 145 000
Recording import duties and clearing
charges
Debit Credit
R R
Bank 189 000
Sales 189 000
Recording sales
Debit Credit
R R
Cost of sales 129 400
Inventory of merchandise control account 129 400
Recording cost of sales
, Debit Credit
R R
Purchases returns 38 350
Inventory of merchandise control account 38 350
Goods returned to supplier
Debit Credit
R R
Sales returns 13 500
Bank 13 500
Goods returned by customers
Debit Credit
R R
Inventory of merchandise control account 8 850
Cost of sales 8 850
Adjusting cost of sales for returned goods
OSCAR THE TUTOR
Next page
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
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Pre vi o us ac t i vi t y
Assessment 5
, Question 7
Mfolozi (Pty) Ltd is a company established by young entrepreneurs.
Incomplete
answer
The company makes designs and sells artwork. The company
Marked out of
15.00 employs two artists. The wage summary of these two employees is
Flag
question
as follows:
EMPLOYEE NAME NORMAL WAGE PER VACATION LEAVE (IN
WEEK WEEKS)
Mpho R1 575 4
Thalente R1 710 3
Additional information:
The company operates on a 40-hour week (Mon – Fri), including
forty-five (45) minutes for tea and lunch breaks.
There are ten (10) public holidays per year, two (2) of which occur
on Saturdays during the year.
Idle time is estimated at 5% of available production time at work.
Thalente weekly pension contributions of R410 are allocated at a
ratio of 4:6 between the employee and the employer, respectively.
Mpho weekly pension contributions of R375 are allocated at a
ratio of 3:7 between the employee and the employer, respectively.
The UIF rate for all employees is 2% of total gross remuneration,
allocated at a ratio of 1:1 between the employee and employer,
respectively.
Required:
Calculate the following items and fill in the missing data by choosing
the correct answers from the options provided:
(a) Total budgeted productive hours per employee (rounded to
decimals).
Thalente Mpho
OSCAR THE TUTOR teams. Vuvuzela uses a perpetual inventory system and applies the
+27737560989 FIFO method for the valuation of merchandise. The following are
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials inventory transactions for the month of August 2024:
On 5 August 2024, one thousand one hundred and fifty (1 150)
units of jerseys that were imported from India were delivered to
the company’s premises in Newcastle, KwaZulu-Natal. The Indian
supplier had issued an invoice for R590 per jersey. The jerseys
were cleared through Richards Bay harbour and import duties and
clearing charges of R145 000 were paid in cash. The soccer
jerseys were transported by road from Richards Bay to Newcastle
at a total cost of R4 500, which was paid for in cash.
On 7 August 2024, 210 units of soccer jerseys were sold on for
cash.
On 12 August 2024, 65 units delivered on 5 August were returned
to the supplier.
On 18 August 2024, 15 units sold from the first batch were
returned by customers for a refund.
The opening balance of inventory on 1 August 2024 was 50 units at a
cost of R700 each. The selling price for the month of August
remained constant at R900 per unit.
Required:
Complete the journal entries for the above-mentioned transactions
by selecting the appropriate accounts and related data:
Debit Credit
R R
Inventory of merchandise control account 678 500
, Trade payables 678 500
Recording invoice from Indian supplier
Debit Credit
R R
Inventory of merchandise control account 4 500
Bank 4 500
Recording delivery charges
Debit Credit
R R
Inventory of merchandise control account 145 000
Bank 145 000
Recording import duties and clearing
charges
Debit Credit
R R
Bank 189 000
Sales 189 000
Recording sales
Debit Credit
R R
Cost of sales 129 400
Inventory of merchandise control account 129 400
Recording cost of sales
, Debit Credit
R R
Purchases returns 38 350
Inventory of merchandise control account 38 350
Goods returned to supplier
Debit Credit
R R
Sales returns 13 500
Bank 13 500
Goods returned by customers
Debit Credit
R R
Inventory of merchandise control account 8 850
Cost of sales 8 850
Adjusting cost of sales for returned goods
OSCAR THE TUTOR
Next page
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA
tutorials
Pre vi o us ac t i vi t y
Assessment 5
, Question 7
Mfolozi (Pty) Ltd is a company established by young entrepreneurs.
Incomplete
answer
The company makes designs and sells artwork. The company
Marked out of
15.00 employs two artists. The wage summary of these two employees is
Flag
question
as follows:
EMPLOYEE NAME NORMAL WAGE PER VACATION LEAVE (IN
WEEK WEEKS)
Mpho R1 575 4
Thalente R1 710 3
Additional information:
The company operates on a 40-hour week (Mon – Fri), including
forty-five (45) minutes for tea and lunch breaks.
There are ten (10) public holidays per year, two (2) of which occur
on Saturdays during the year.
Idle time is estimated at 5% of available production time at work.
Thalente weekly pension contributions of R410 are allocated at a
ratio of 4:6 between the employee and the employer, respectively.
Mpho weekly pension contributions of R375 are allocated at a
ratio of 3:7 between the employee and the employer, respectively.
The UIF rate for all employees is 2% of total gross remuneration,
allocated at a ratio of 1:1 between the employee and employer,
respectively.
Required:
Calculate the following items and fill in the missing data by choosing
the correct answers from the options provided:
(a) Total budgeted productive hours per employee (rounded to
decimals).
Thalente Mpho
