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December 1, 2023 at 12:21 pm
Sir, if the production was lesser than the sales then closing inventory wont be included right? So for the cost of production we wont subtract closing inventory?
John Moffat says
December 1, 2023 at 2:26 pm
If production is lower than sales then the inventory will decrease. (There must have been opening inventory otherwise they would not have had enough to sell!! The closing inventory will be lower than the opening inventory.)
August 13, 2023 at 8:09 am
Example 1 asks for the budget profit statements and so the actual fixed overheads are irrelevant.
In example 2 we are told the actual fixed overheads.
August 13, 2023 at 10:52 pm
August 14, 2023 at 6:37 am
You are welcome.
August 13, 2023 at 1:37 am
In example 1, For the ‘Actual Fixed OH’ You have taken the “Budgeted” OH of $20,000, Whilst in Example 2, You have used $315,000 of the Amount provided for the ‘Actual Fixed OH’ instead the Budgeted OH of $320,000.
Could you please be kind enough to justify why you have inverted the use of the elements when applying it to the same concept & How I should be expected to deal with such similar situations at the Exam.
Much Appreciated! 🙂
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