FAC1501 Assignment 02 Semester 01 2020 Questions and Answers

FAC1501
Introductory Financial Accounting
Assignment 02 for Semester 01 (compulsory)
Unique Number 834713
Due: 20 April 2020
Before you answer the questions for this assignment, you must have studied learning units 6 to 11
of your study guide.

Submit this assignment electronically via myUnisa or do it on a mark-reading sheet.

Preview of Question 1:

Use the information provided below to answer question 1:

Ethekwini Traders provided you with the following information for the year ended 30 April 2020:




A physical inventory count on 30 April 2020 indicated that inventory on hand was R500 000.

1. The cost of sales amount on 30 April 2020 will be …

(1) 500 000
(2) 460 000
(3) 534 500
(4) 405 500
(5) 465 500

Answer:

R
Inventory (1 May 2019) 400 000
Add: Purchases 600 000
Carriage on purchases 5 500
1005 500
Less: Purchases returns (40 000)
Inventory 30 April 2020 (500 000)
Cost of Sales 465 500


Also see Page 240 of the study guide for further information:

, The cost price of inventory sold during an accounting period will thus be determined as follows:

Cost price of inventory at the beginning of the financial year (closing inventory of previous year)

Add: Cost price of inventory purchased during the financial year (the total amount spent on purchases)

Less: Cost price of inventory at the end of the financial year, determined by a physical inventory count
(the unsold inventory)