1. Business
  2. Accounting
  3. tomlin limited a new zealand gst registered company is a...

Question: tomlin limited a new zealand gst registered company is a...

Question details

Tomlin Limited, a New Zealand GST registered company, is a retailer of filter systems. Shown below are the companys beginning inventory and purchases of a particular filter for unit Z-398 in March, all exclusive of GST Beginning inventory (March 1st) 0 Purchase (March 5th) Purchase Return (March 7th) Purchase (March 26th) Purchase (March 31st) Quantity Unit Cost Total Cost $190 $212 $212 $215 $220 $O $4,240 $1,060 $4,300 $6,600 20 20 30 On March 21st, Tomlin Limited sold, on credit, 10 filters for $370 per unit, excluding GST Additional information: 1. Include the effects of GST where applicable. 2. All purchases are made from the supplier Maker Factory on 3/8, n/30 credit terms. Maker Factory is also GST registered. 3. The beginning balance of accounts payable owing to Maker Factory is $0 as at March 1st. 4. For (), ), c), (d), (e) & (g) below, assume use of a perpetual inventory system. 5. Journal entries do not require narrations. Required: (a)What is the required journal entry for the transaction on March 7th? Assume the related original purchase on March 5th was on credit and had not yet been paid. (b) On March 12th, Tomlin Limited settled its account with Maker Factory in full. What is the required joumal entry to record this transaction? (c)What is the value of ending inventory as at March 31st under each of the following cost flow First-in, first out (FIFO) ii) Last-in, first out (LIFO) (d) What is the average cost per unit for the ending inventory balance as at March 31st if the Weighted Average Cost (WAC) cost flow assumption was used? (e) As at March 21st, state whether Tomlin Limited can expect a GST payment or refund from the Inland Revenue. State the dollar value of the GST payment or refund expected. (f) gnore (a) to (e) above in answering this question. Tomlin Limited made a credit sale to a China based customer on March 30th, shipping terms FOB shipping point, and exported the filters on March 31st for delivery in the following month on April 2nd to China. Discuss, for Tomlin Limited, the effect(s) of this transaction on the March financial statements, including GST implications, if any. No journal entries or calculations are required to answer this question

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution