Question :   6. Stock take discrepancies between a count sheet and recorded : 2102202

 

6. Stock take discrepancies between a count sheet and recorded quantities in the ledger may arise due to:

I Theft of stock during the year

II Stock purchased under FOB destination terms being in transit at period end

III A consignee including consignment stock in their physical count.

IV Sales returns not being processed into the ledger

a. I, II and III

b. II, III and IV

c. I, III and IV

d. I, II and IV

7. Duo Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Duo Ltd for the year ended 30 June 2013:

The cost of ending inventory using the weighted average cost method (rounded to the nearest dollar) is:

a. $459

b. $465

c. $499

d. $483

8. Uno Ltd uses a periodic inventory system and rounds the average unit cost to the nearest dollar. The following data relates to Uno Ltd for the year ended 30 June 2014:

 

Opening inventory	10 units @ average cost of $25 each
January purchases	10 units @ $24 each
February sales	8 units
March product returns	4 units
June sales	6 units
July purchases	39 units @$26 each
August sales	18 units
October purchases	10 units @$24 each
November sales	25 units

The cost of goods sold for the year using the weighted average method is:

a. $1528

b. $1734

c. $1425

d. $1984

9. The weighted average inventory costing method is particularly suitable to inventory where:

a. dissimilar products are stored in separate locations;

b. the entity carries stocks of raw materials, work-in-progress and finished goods;

c. goods have distinct use-by dates and the goods produced first must be sold earliest;

d. homogeneous products are mixed together.

10. When an inventory costing formula is changed, the change is required to be applied:

a. prospectively and the adjustment taken through the current profit or loss;

b. retrospectively and the adjustment taken through the opening balance of retained earnings;

c. prospectively and the current period adjustment recognised directly in equity;

d. retrospectively and the adjustment recognised as an extraordinary gain or loss.