Exam (elaborations)
MAC1501 Assignment 7 Semester 2 2024
- Course
- MAC1501 (MAC1501)
- Institution
- University Of South Africa (Unisa)
MAC1501 Assignment 7 2024
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11/13/24, 11:07 PM Assessment 7 (page 2 of 7)UNISA 2024 MAC1501-24-S2 Welcome Message Assessment 7
QUIZ Time left 0:25:02
Assessment 7
Vuvuzela Limited is a retailer of soccer jerseys for various soccer teams. Vuvuzela uses
a perpetual inventory system and applies the FIFO method for the valuation of
merchandise. The following are inventory transactions for the month of August 2024:
Question 1
Answer saved On 5 August 2024, one thousand one hundred and fifty (1 150) units of jerseys that
Marked out of
15.00 were imported from India were delivered to the company’s premises in Newcastle,
Flag question KwaZulu-Natal. The Indian supplier had issued an invoice for R590 per jersey. The
jerseys were cleared through Richards Bay harbour and import duties and clearing
charges of R145 000 were paid in cash. The soccer jerseys were transported by road
from Richards Bay to Newcastle at a total cost of R4 500, which was paid for in cash.
On 7 August 2024, 210 units of soccer jerseys were sold on for cash.
On 12 August 2024, 65 units delivered on 5 August were returned to the supplier.
On 18 August 2024, 15 units sold from the first batch were returned by customers for
a refund.
The opening balance of inventory on 1 August 2024 was 50 units at a cost of R700 each.
The selling price for the month of August remained constant at R900 per unit.
Required:
Complete the journal entries for the above-mentioned transactions by selecting the
appropriate accounts and related data:
Debit Credit
R R
Inventory of merchandise control account 678 500
Trade payables 678 500
Recording invoice from Indian supplier
Debit Credit
R R
Inventory of merchandise control account 4 500
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=23603110&cmid=846643# 1/3
, 11/13/24, 11:07 PM Assessment 7 (page 1 of 7)
Bank 4 500
Recording delivery charges
Debit Credit
R R
Inventory of merchandise control account 145 000
Bank 145 000
Recording import duties and clearing charges
Debit Credit
R R
Bank 189 000
Sales 189 000
Recording sales
Debit Credit
R R
Cost of sales 143 000
Inventory of merchandise control account 143 000
Recording cost of sales
Debit Credit
R R
Trade payables 38 350
Inventory of merchandise control account 38 350
Goods returned to supplier
Debit Credit
R R
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php?attempt=23603110&cmid=846643# 2/3
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