ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTINGCENTRAL QUEENSLAND UNIVERISTY, SYDNEY CAMPUS

SAMIKSHYA BHANDARI (12103346)

ASSIGNMENT - (STEP 7 T0 11)

STEP-7: Finally in the last, I must say time flies. It still like the yesterday we started this term but we have almost near to the last week. I am doing my final steps. Before starting the assignment, I go back to the assignment help documents on moodle to find what each step is about. Step 7 is all about finding detain information on inventories of the firm provided to us in the beginning of this term. My firm is “IMDEX limited.” I have already done trial balance of this firm before this step. To make sure, I complete this step properly I go to study guide and videos help linked in moodle which helped me a lot to understand what are inventories and how are inventories been placed, used and calculated in any firm.

What are inventories?

Inventories are any things on the business which are purchased by the firm to make it appropriate for selling but not sold yet. They are the current assets of the business which are shown on balance sheet of financial statement.

It is very important in any business to record proper inventory transaction for which there are two different methods (periodic and perpetual). The clarifications of both methods are clearly demonstrated in study guide that make my knowledge deeper in this topic.

Why are inventories kept in business?

Inventories are used to make finished goods which can be sell in the market so they are used and kept which help the production process smooth. We must make sure that the costs of inventories are lower than selling price which are expressed in $.

How can we calculate inventories and record them?

As I have mentioned earlier two ways of recording inventory transaction, study guide says there are three different ways to calculate cost of inventories which are first-in first-out(FIFO), Last-in first-out(LIFO) and weighted average.

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTINGQuickly, reading the study guide , I go back to annual report of imdex limited and collected date related to invetories. I have added the figure that I obtained below:

This picture is taken from balance sheet of imdex where the inventories are recorded in the current assets. In the year 2017, the inventories cost was $29904 which seems to be increased to $33614 later in the year 2018. What does the increase in inventory means? Simply, the firm have added more stock because they may be expecting more sells in the 2018. Likewise,inventory is only mentioned in the current assets so those inventory will be finished by the end of a year. For further informatiom, I go to the note area of annual report to find elaborated information about inventory. Raw materials,work in progress and finished goods are shown as the elements of total inventories where finished goods contribute high amount in the both year. Regarding the raw materials and work in progress, the cost has been reduced in 2018 while compare to 2017.Further more, the firm have been using net realization value to determine the inventory’s value.in this method the value is realized when goods are sold. It shows that the estimated selling price will be higher than the total cost used to make final sale.

STEP-8, MYOB training and set-up .

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTINGLOG INTO MYOB:

Successful setup of company file and miscellaneous set up

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTINGSales set up

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

MYOB TEST:

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

MYOB TRAINING SESSIONS: Training 1:

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

Training 2:

ACCT11081: INTRODUCTORY FINANCIAL ACCOUNTING

STEP-9:

STEP-10: