Question on Cost and Management Accounting

A 1000kg bale of mixed clothes was bought at a wholesaler in Queensland at a cost of A$1500.00. The cost, insurance and freight (CIF) was A$300 paid by the supplier. When it landed at the Port Moresby wharf, other fees were applied such as K200 for storage, customs duty K100 and cartage charges is K150 to transport the bale to Lot 6 ay Gordon Industrial Center. The following items were found in the bale; 1200 Extra- large shirts, 1000 large shirts, 800 medium shirts and 600 for small sizes shirts; ladies tops are 900 of them while mini skirts were 1400. Note: Exchange rate; 1K= 0.5 A$. The retail prices suggested were;
a) Extra- large shirts-200%
b) large size shirts- 150%
c) medium size shirts- 100%
d) small size shirts- 80%
d) ladies tops and skirts- 85%

Required; Calculate a total sales value and also compute whether a trader made a profit or loss?

asked Jun 12, 2016 in General by toemanil (14 points) 75 views

1 Answer

0 votes

Note: Kina is currency of Papua New Guinea and  1 Kina = 100 Toea

1kina = .5A$

Total expenses borne by the buyer (450 kinas) equal to A$225.

Amount spent by the seller A$300 not included in cost because that is not borne by the buyer.

answered Jun 20, 2016 by jbsclasses (3,971 points)