Internation Financial Reporting Statement 1 Cuối Kì

Question 1: The inventory value for the financial statements of MBC Inc for the ended 30june
2016 was based on a inventory count on 7 july 2016, which gave a toatl inventory value of
$61,300. Between 30 june and 7 july 2017, the following transaction tool place.
Purchase of goods $20,400, sale of goods (mark-up on cost at 15%) 14,950, goods returned by
MBC Inc to supplier 1,500
Which figure should be imcluded in the financial statements for inventories at 30 june 2017:
SOLUTION:
Gọi x là giá trị hàng tồn kho tại ngày 30/6:
X + 20,400 - – 1,500 = 61,300
X = $55,400

Question 2 : Wells Co bought an item of machinery on 30 September 20X2 for $47.900, The
useful life of the-asset was five years and depreciation commenced on this date on the straight
line basis. Due to a change in the focus of Wells’ business, the asset was disposed of on 30
September 20x5. The proceeds of the sale were $30,800.
What profit or loss is recognised in wells’ statement of comprehensive income for the year ended
31 December 20X6 (if profit, write Positive number; if loss, write negative number (S...)

SOLUTION:
Cost – Residual Value ( Salvage Value )
Depreciation =
Useful Life
47,900 - 0
= 9,580
5
Year

Depreciation


20X2

( Last three months)

9,580
x 3 = $2,395

20X3

12
$9,580

20X4

$9,580

20X5

9,580
x 9 = $7,185
12

Carrying Amount = 47,900 – 2,395 –( 9,580 x2 ) – 7,185 = $19,160
Machine for sale = $30,800
 Frofit = $30,800 – $19,160 = $11,640

Question 3 : NPAwood Construction In.c recognizes revenue over time according to percentage
of completion for its long-term construction contracts. In 2016, NPAwood began work on a
$11,652,000 fixed-fee construction contract, which was completed in 2017. The accounting
records disclosed the following data at the end of 2016:
Cost incurred

$5,400,000

Estimated cost to complete

$3,600,000

Progress billing

$3,402,000

Cash collection

$3,200,000

The amount of accounts receivable is added in the 2016 financial position related to the
construction accounts is $3,589,200
SOLUTION
Gross profit = Revenue – Total cost (LNG= DT-tổng chi phí)
The Revenue = ( Cost incurred : Total cost ) × Completion cost
(Doanh thu = (Chi phí phát sinh: Tổng chi phí) × Chi phí hồn thành)
= ( 5,400,000 : 9,000,000 ) × 11,652,000= $6,991,200
=> (9.000.000 bằng Chi phí phát sinh $ 5,400,000+Chi phí ước tính để hồn thành $ 3,600,000)

Gross profit = 6,991,200 – 5,400,000 = $1,591,200
Now put these values to the above formula So, the value would equal to:


= $5,400,000 + $1,591,200 – 3,402,000
= $3,589,200
Question 4:The Simpson Construction Company recognizes revenue over time according to

percentage of completion for its long-term construction contracts. In 2016, Simpson began work
on a construction contract. Information on this contract at the end of 2016 is as follows:
Cost incurred during the year : 2,000,000
Estimated aditional cost to complete: 8,100,000
Gross profit recognized in 2016: $210,500
What is the contract price (total revenue) on this contract is
SOLUTION:
 Revenue = Gross profit + Total cost

 Revenue = 210,500 + (2,000,000 + 8,100,000)
 Revenue = $10,310,500

Question 5: A company values its inventory using the first in, first out (FIFO) method. At May
1st, 2017, the company 811 engines in inventory, valued at $ 190 each. During the year ended 30
April, 2017 the following transactions took place: July 1st, 2017, purchased 763 engines at $220
each, November 1st, 2017, sold 400 engines for $ 160,000 .February 1st, 2018, purchased 341
engines at $230 each, April 15th, 2018, sold 250 engines for $125,000
The value of the company's closing inventory of engines at 30 April 2018:
SOLUTION:
Calculate the closing inventory at 30 April 2018:
+ Balance at the beginning of the period is 811, but during the period 650 were sold out so: 811 –
(400 + 250) = 161
+ The ending balance is : 161 x $190 + 763 x $220 + 341 x $230 = $276,880
Question 6: Skyer manufacturers and sells adhesive warning signs for workplaces. The stock of
signs was included in the closing inventory as of 31 Dec 2017 at cost $32 per pack. During the
final audit the auditors noted that the subsequent selling price for the inventory at 15th Jan 2018
was $186 per pack. Furthermore, inquiry reveals that during the physical stock take, a water
leakage has damaged the signs and glue. Accordingly in the following week, Sticky Corp spent a
total of $26 per pack for repairing and reapplying the glue to the signs. What are the net
realisable value and inventory write-down (loss)?

Select one:
a. $160 and $0 respectively


b. $154 and $26 respectively
c. $160 and $128 respectively
d. $160 and $32 respectively
SOLUTION:
NRV = Selling Price – Cost to Completion – Cost to make the sale
NRV = $186

-

$26

-

0

= $160

Question 7: A company values its inventory using the first in, first out (FIFO) method. At May
1st, 2017, the company 807 engines in inventory, valued at $ 190 each. During the year ended 30
April, 2017 the following transactions took place: July 1st, 2017, purchased 845 engines at $220
each, November 1st, 2017, sold 400 engines for $ 160,000 February 1st, 2018, purchased 496
engines at $230 each, April 15th, 2018, sold 250 engines for $125,000
The value of the company's closing inventory of engines at 30 April 2018:

Date
1/5/2017

1/7/2017

No,
units
845

Purachases
Unit Total
cost
cost
220

15/4/2018
30/4/2018

496

230

Cost of sales
Unit Total
cost
cost

185,900

1/11/2017
1/2/2018

No,

units

400

400

160,000

250

500

125,000

114,080

No,
units
807
807
845
407
845
407
845
496
157
845
496

Balance
Unit Total
cost
cost
190
153,330
190
153,330
220
185,900
190
77,330
220
185,900
190
77,330
220
185,900
230
114,080
190
29,830
220
185,900
230
114,080
329,810