SOLUTION AT Australian Expert Writers
Task 1Part AYou 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 ShirtsDate Ref DebitCredit BalanceBlack TrousersDate RefDebit Credit BalanceWhite ShirtsDate Ref DebitCredit BalanceBlack BeltsDate Ref DebitCredit BalanceBlue ShirtsDate Ref Debit Credit BalanceBlack T- ShirtsDate Ref Debit Credit BalanceQ4.PART BCost of goods sold (COGS)Inventory shortage or loss of inventory?• Prepare journal entries for both perpetual and period inventory record systemsPerpetual Inventory record systemsDateDetails Debit CreditPeriodic Inventory record systemsDate DetailsDebit Credit• General ledger accounts for Inventory and Accounts receivable in the perpetual inventory systemInventoryDateRef Debit Credit BalanceAccounts receivableDate Ref DebitCredit Balance• Show the gross profit calculation for both perpetual and period inventory record systemsGross profit calculation for perpetual inventoryGross profit calculation for periodic inventoryPART CScenario 1Estimate the cost of a company’s inventory as at June 30 based on gross margin.Scenario 2Calculate the net realizable valueItem Code Units Unit Cost Total Cost Units Market Price Total Market Price Lowe of Cost or MarketWrite the journal entry to record the net realizable value of the total inventoryDetails Debit CreditScenario 31. 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 – PerpetualDateDetailsPurchasesCost of goods soldBalanceUnits Unit Price ($) Total ($) Units Unit Price ($) Total ($) Units Unit Price ($) Total ($)- FIFO Periodicb) Weighted Average – PeriodicPart Da)DateParticularsDebitCreditb)DateParticularsDebitCreditPart Ea) How to calculate inventory turnoverb) Develop a schedule of inventory turnover and present it using MS Word or Excel spreadsheetc) Prepare an inventory status report using MS Word or Excel spreadsheetTask 21. 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.
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