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munyandekwe

Profile picture of munyandekwe
Active 6 months ago
  • Topics: 4
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Viewing 5 posts - 1 through 5 (of 5 total)
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  • August 22, 2024 at 10:10 am #710170
    66c3fc9bb270af5a36a18dece7163284085af3cb6e682ceea474e2df2b156b5b 80munyandekwe
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    Muhanga Ltd. operates with a significant network of retail branches.In the financial statements for future years,Muhanga 2Ltd proposes to change the determination of cash generating unit (CGU) for impairment testing purposes at the level of each product line, rather than at each individualI branch. In the proposal, the determinationr of the CGUs will now be based the fact that each of the individual branches of Muhanga Ltd does not operate on a standalone basis as some income such as avolume rebates and costs are dependent on the nature of the product line rather than on individual branches. Muhanga Ltd considers that cash inflows and outflows for individual branches do not provide an accurate assessment of actual cash generated by those branches. However, Muhanga Ltd has daily sales information and monthly statements of profit or loss produced for each individual branch and this information is used to make decisions about continuing to operate individual branches. Required: With justification, advise Muhanga Ltd whether the proposed change to the to the accounting practice relating to the treatment of CGUs is acceptable under IFRS

    March 24, 2020 at 9:33 pm #565683
    66c3fc9bb270af5a36a18dece7163284085af3cb6e682ceea474e2df2b156b5b 80munyandekwe
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    • Topics: 4
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    @karuhanga said:
    SREC deals in buying&distribution of solar products.It buys solar bulbs which are packed in boxes,each box contains 50 bulbs.Opening inventory was 100 boxes valued at 14,000,000 on 01-Jan 2018.The following transactions occurred from Jan to March 2018:
    Purchase/Receipt Purchase/Receipt
    Date: Qty: Price Per box Date: Qty: Selling Price Per box
    10-Jan 100 150,000 22-Jan 300 170,000
    20-Jan 200 155,000
    3-Feb 300 160,000 10-Feb 300 180,000
    28-Feb 200 154,000 15-Mar 200 190,000
    13-Mar 250 153,000
    Using FIFO,determine the value of:
    1) Closing inventory as at 31-March 2018
    2) Cost of goods sold
    Response
    Purchese Issues/sales Balance
    Date Qty Price(000) Amout(000) Qty Price Amout(000)
    Openning 100 14.000 1.400.000
    10 jan 100 150 15.000 100 150 15.000
    20 jan 200 155 31.000 200 155 31.000
    46.000 400 1.446.000

    22 jan 100 14000
    100 150
    100 155
    300 100 155 15.500
    03 feb 300 160 48.000 300 160 48.000
    400 63.500
    10 feb 100 155
    200 160
    300 100 160 16000
    28 feb 200 154 30.800 200 154 30800
    300 46.800

    100 160 16.000
    200 154 30.800
    13 mar 250 153 38.250 250 153 38.250
    550 85.050

    15 mar 100 160
    100 154
    200 100 154 15400
    250 153 38250
    Total Purchases 163.050
    Closing Inventory 38250

    Openning Inventory 70.000.000 (100*50*14,000)
    Total Purchases 163.050
    Closing Inventory -38.250
    Cost of sales 70.124.800

    March 24, 2020 at 7:10 pm #565670
    66c3fc9bb270af5a36a18dece7163284085af3cb6e682ceea474e2df2b156b5b 80munyandekwe
    Participant
    • Topics: 4
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    thank you let me try to calculate it.
    will come back with what i think.

    March 24, 2020 at 3:15 pm #565654
    66c3fc9bb270af5a36a18dece7163284085af3cb6e682ceea474e2df2b156b5b 80munyandekwe
    Participant
    • Topics: 4
    • Replies: 5
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    let me explain this once again;

    purchase issues/sales
    date qty price per box date qty selling price per box
    10-jan 100 150,000 22-jan 300 170,000
    20-jan 200 155,000
    03-mar 300 160,000 10-feb 300 180,000
    28-feb 200 154,000 15-mar 200 190,000
    13-mar 250 153,000

    as i said in your examples,issues/sales do not have selling price per say box…..
    this is where i get confused.

    March 24, 2020 at 2:56 pm #565647
    66c3fc9bb270af5a36a18dece7163284085af3cb6e682ceea474e2df2b156b5b 80munyandekwe
    Participant
    • Topics: 4
    • Replies: 5
    • ☆

    dear mr.john,what confuses me in this question are transactions involving issuing out that have have cost element attached.

    when you look at your examples,issues dont have cost element attached in their computation.

    again in this question i dont understand how to get the openning stock!

    thanks

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