I need assistants with my answer, i have been advised its incorrect and not sure where i’m going wrong!
Question 2
Stewart Ember Creations maintains inventory cards to record inventory movements and to help value their inventory. The company uses the perpetual inventory system.
The following transactions for SKU007 have been recorded for the month of June:
All transactions exclude GST.
For questions (b)(i) and (d)(i) 10% GST needs to add to the purchase cost listed for all credit purchases for Accounts Payable valuation purposes.
1/6 Opening balance: 400 units on hand @ $25.00 per unit.
6/6 Purchase on credit of 200 units @ $26.00 per unit; total cost $5,200.
7/6 Sale of 170 units.
9/6 Returned to the supplier for credit 20 units (originally purchased on 6/6).
17/6 Sale of 130 units.
23/6 Purchase on credit of 120 units @ $27.00 per unit; total cost $3,240.
28/6 Sale of 160 units.
30/6 Customer returned 10 units in good condition (originally sold on 17/6).
30/6 Stocktake reveals 235 units on hand. This gives rise to a stock variance when compared to the stock card balance.
(b) (ii) Provide journal entries (see next pages) for Cost of Goods Sold and stock variance.
My Answer is incorrect
| Date | Particulars | Debit | Credit |
| 30/06 | Cost of Goods Sold | $11,471.70 | |
| Inventory Control | 11,471.70 | ||
| Cost of Goods Sold for June | |||
| 30/06 | Inventory Variance | $386.85 | |
| Inventory Control | $386.85 | ||
| Inventory Variance for June |
(d) (ii) Provide journal entries (see next pages) for Cost of Goods Sold and stock variance.
| Date | Particulars | Debit | Credit |
| 30/06 | Cost of Goods Sold | 11,310 | |
| Inventory Control | 11,310 | ||
| Cost of Goods Sold for June | |||
| 30/06 | Inventory Variance | 380 | |
| Inventory Control | 380 | ||
| Inventory Variance for June |
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