[gaeunn]

Hi, my apologies. I’m supposed to find the profit under both methods (absorption and marginal costing)

[gaeunn]

Hi, the information are as follows. Thank you for your help so far.
I have been calculating for a long time but unable to get the answer.
Would appreciate it if you could help me with this.
Direct materials 6.00
Direct labour 7.50
Variable overhead 2.50
Fixed overhead absorption rate 5.00

Selling price 30.00
Budgeted production for the month was 5,000 units through the company managed to produce 5,800 units, selling 5,200 of them and incurring fixed overhead costs of $27,400.

[gaeunn]

Hi sorry I have another doubt. Since sales is 5200 units, and the budgeted production is 5000 units, does that mean that we have to do opening inventory of 200 units ?

[gaeunn]

Thank you so much sir !

[gaeunn]

Thank you sir, that definitely clears up alot of my doubts at the start. thank you so much

[gaeunn]

Yes that certainly clears up a lot. Thank you sir

[gaeunn]

thank you for the clarification sir

[gaeunn]

i think its really unusual but the question states that cash receipts($9000) consists of a receivable previously written off($1000), and the answer key states that in the receivables ledger account debit receivables of $1000 cr irrecoverable debt recovered. This is confusing as the study kit states that debt has already been taken out of receivables and cannot be reversed

[gaeunn]

Hi, thank you sir. I have watched the lectures but might have missed this. will be reviewing the lectures again. Thank you so much for your time

[gaeunn]

Hi, thank you so much for the reply.

Does that mean that when we use 2% and over 50 years, we should be getting the same answer

however the answer that I get for after revaluation = 600,000*0.2=$12,000
when i use remaining useful life, i get 600,000/40=$15,000

Thank you

[Author]

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