[maxinu]

Ah my mistake, apologies.

One more question, I have reviewed your lecture on this topic as well as consolidated Chapter 26 from your notes and dealing with inventory is simple as you suggested.

However, how do you cost unused materials in inventory?

I have added unused materials to my inventory at their standard cost as you mentioned in your lecture this would be the case. But, because of the difference in actual cost and standard cost of materials, the profit in the actual budget does not fully represent all the costs incurred. Would I therefore charge the inventory of unused materials at their actual cost?

[maxinu]

Thanks for the reply.

I see. However, if a question states there is no opening or closing work in progress what would you do there? From what I understand work in progress refers to raw materials, labour etc… so wouldn’t it imply there are no materials left over? Even though it is clear there are left over materials

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