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January 29, 2020, 12:10:12 pm

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#### morlin01

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##### Re: VCE Accounting Question Thread!
« Reply #1755 on: January 20, 2020, 07:52:30 am »
0
Hi,

Can someone distinguish between Accrued Wages and Wages Owing, providing which report that they will be required to be reported in!

Thankyou

2020: English, Further Mathematics, Accounting, Italian, Religion and Society

#### Seamus Wong

• Trendsetter
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##### Re: VCE Accounting Question Thread!
« Reply #1756 on: January 20, 2020, 07:07:31 pm »
0
Hi,

Can someone distinguish between Accrued Wages and Wages Owing, providing which report that they will be required to be reported in!

Thankyou

Pretty sure they are the same. Both represent an obligation of a firm to transfer an economic resource (cash) to an outside entity (employees) at some future date. It is therefore classified as a current Liability on the Balance sheet.
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#### morlin01

• Posts: 10
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##### Re: VCE Accounting Question Thread!
« Reply #1757 on: January 20, 2020, 08:11:47 pm »
0
Hi !

A business uses FIFO to manage its inventory of clocks, and their current balance is:
2 Clocks with a cost price of 45 each-------was purchased first by the business
12 Clocks with a cost price of 50 each

On the 7th of Jan, a customer purchases 4 clocks, and in order to fulfil the rules of FIFO, the customer receives the 2 Clocks worth the $45 each and 2 clocks worth$50 each

Two days later, the customer makes a sales return of one of the clocks (but the info doesn't specify which clock was returned)
SO my question is, is there a specific rule that determines which clock is recorded as the sales return in the inventory card?

Thankyou!

2020: English, Further Mathematics, Accounting, Italian, Religion and Society

#### idrk

• Posts: 6
• Respect: 0
##### Re: VCE Accounting Question Thread!
« Reply #1758 on: January 21, 2020, 06:15:54 pm »
0
Hi !

A business uses FIFO to manage its inventory of clocks, and their current balance is:
2 Clocks with a cost price of 45 each-------was purchased first by the business
12 Clocks with a cost price of 50 each

On the 7th of Jan, a customer purchases 4 clocks, and in order to fulfil the rules of FIFO, the customer receives the 2 Clocks worth the $45 each and 2 clocks worth$50 each

Two days later, the customer makes a sales return of one of the clocks (but the info doesn't specify which clock was returned)
SO my question is, is there a specific rule that determines which clock is recorded as the sales return in the inventory card?

Thankyou!

The Rule is Last out, first in or LOFI, where the last inventory to go out according to FIFO is the first inventory to be returned
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