Calculate the total net realizable value, Cost Accounting

Assignment Help:

Surplus Stores Ltd is a company which frequently buy goods in large quantities and makes alterations to the goods before selling. At 31 Dec 2000 the following items were included in stock:

(1) 8000 pairs of rubber boots. These had cost $6.50 per pair. In order to make them saleable Surplus Stores Ltd will buy linings at a cost of $1.20 per pair. These linings have not yet been delivered or paid for. The labour cost of fitting linings to boots will total $500. The expected selling price is $9.95 per pair.

(2)  100 pairs of fire damaged shoes. These cost $3000 in total. 200 pairs are so badly damaged that they will be destroyed. The remaining 800 pairs will need cleaning and polishing at a total cost of $960. This work has not yet been done. It is expected that the shoes will sell for $7.49 per pair.

(3) 40 large tents which were purchased for $150 each. After inspection the company estimated that repairs to the tents will cost a total of $250. These repairs will take 2 months and the company estimates the storage costs will amount to $1 per tent per month. The company is expecting to sell the tents for $180 each but expects to give a trade discount of 5% on half the tents and pay carriage of $4 per tent on 40% of the tents.

(4) 500 jackets in a now unfashionable style. Surplus Stores Ltd paid $8 for each jacket but is offering to sell them at $10 each. The company expects to sell 200 at this price with the remainder being sold off at $9 each. For all jacket sales they will have to pay packing and carriage of $1.50 per jacket.

(5) 20 cameras which were bought for a total cost of $1240. The company has decided to include a case, costing $2.50 and additional equipment, costing $6 with each camera which will then retail at $89. The cases and additional equipment have yet to be acquired.

REQUIRED:

Calculate the total and the total net realizable value for each of the above items at 31 Dec 2000.     


Related Discussions:- Calculate the total net realizable value

Classification of labour costs, Classification of Labour Costs This ca...

Classification of Labour Costs This can be classified into like: a) Indirect or Direct cost b) Variable or Fixed cost c) Non controllable and controllable cost a)

What is operating income under absorption costing, Loring Company had the f...

Loring Company had the following data for the month: Variable costs per unit: Direct Materials $4 Direct Labor 3.20 Variable Overhead 1 Variable selling expense 0.40 Fixed Ov

what is your corporate cost of capital , You are the CFO of a Hospital. Su...

You are the CFO of a Hospital. Suppose that your projected average daily reimbursement is $100, 000 and your average collection day is 40 days. What is your hospital's annual cost

Calculate the total revenue, Mandy Building Contractors Ltd signed a fixed-...

Mandy Building Contractors Ltd signed a fixed-price contract to build a bridge for Nelly Ltd for $110 million on 1 July 2012.  Contract costs are estimated as follows:

Gains and losses on disposal, When assets are replaced during the anticipat...

When assets are replaced during the anticipated life of the project, or at the end of the anticipated life of the project, they are sold at their pre-determined scrap values. Incom

What was the amount of cash collected from customers, Q. What was the amoun...

Q. What was the amount of cash a firm collected from its customers, given the following fact set? The firm's balance sheets at the beginning and end of the year show gross accou

Cost of goods manufactured statement., These balances for a company x Ra...

These balances for a company x Raw materials $40,000 Work in process $30,000 Finished goods $60,000 for the current year the company estimated that it would work 150.000 mach

What is the profit maximizing level of advertising, Smith Corp. has determi...

Smith Corp. has determined that its contribution margin, (P - MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales rev

Meaning of budget, BUDGET A BUDGET is a quantitative expression of a ...

BUDGET A BUDGET is a quantitative expression of a business plan for a particular future period, generally a year. BUDGET is the planned future course of action. BUDGET

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd