[teshwar]

thank u

[teshwar]

following up to the goodwill question, I am not quite clear as to why they pro-rated the S.Co’s profit for the year $ 4,960 for 3 months (1 Oct,20×7 to 1 Jan, 20×8) why not include the full $4,960 profit since this amount was reported at the year-end 30 September, 20×8.

[teshwar]

Thank you very much!

[teshwar]

Good afternoon Sir,

I clicked on the link but it is unrelated to my question, that relates to substantive procedures for research and development.

I would like to know if my answer is sufficient gain the 5 marks

thank you

Teshwar

[teshwar]

Thank you

[teshwar]

Sir I am trying to get the answer sheet to the AA pre March 2024 Mock exam so I can review my answers to know if I am taking the right approach .

[teshwar]

Thanks Sir

[teshwar]

Sir John

Non Current Assets 700,000

Current Assets 200,000

Current liabilities 500,000

So, capital employed is

700,000 + (200,000 – 500,000) = 400,000

Is this correct?

[teshwar]

Less net current asset from non current asset to get capital employed

[teshwar]

Sir John this is one of the mock exam questions

[teshwar]

Thank you

[teshwar]

Thank you sir, I understand this way you explained it

[teshwar]

Thanks Sir

[teshwar]

Thank you Sir!

[teshwar]

Thanks Sir.

What about the additive model?

[teshwar]

Sir can you clarify this one too

Question 1

Production 18,000
Sales 16,500
Change in inventory 1500

Fixed production overhead rate is $10

Profit using absorption costing is $40,000

What is profit using marginal costing

1500 x $10 = $15,000
$40,000 – $15,000 = $25,000

Question 2

Production 16,500
Sales 18,000
Change in inventory 1500

Fixed production overhead rate is $10

Profit using absorption costing is $40,000

What is profit using marginal costing

1500 x $10 = $15,000
$40,000 +$15,000 = $55,000

[teshwar]

Sir John, I re-watched the lecturers, just let me know if my understanding is correct

Question 1

Opening inventory 16,500
Closing inventory 18,000
Change in inventory 1500

Fixed production overhead rate is $10

Profit using absorption costing is $40,000

What is profit using marginal costing

1500 x $10 = $15,000
$40,000 – $15,000 = $25000

Question 2

Opening inventory 18,000
Closing inventory 16,500
Change in inventory 1500

Fixed production overhead rate is $10

Profit using absorption costing is $40,000

What is profit using marginal costing

1500 x $10 = $15,000
$40,000 + $15,000 = $55,000

[teshwar]

Thanks Sir. I will watch the lectures.

[teshwar]

I’m in for MA

[teshwar]

In the case of Wye, again if the annual effective rate is R, then (1+R)^4 = 1.20
So, 1+R = fourth root of 1.20 = 1.0466. So R = 0.0466 or 4.66%

So I don’t understand why u meant by fourth root. Are you saying we should do 1.20^4

Sir in bpp answer showed that 1.20^.025 – 1 = 0.0466

Can you please say where did they got the 0.25 from?

5% p.a and semi annual is 2.5%

[teshwar]

Thank you sir

[teshwar]

Sir I watched your videos but i am not clear on that part.

Thank you

[teshwar]

Me

[teshwar]

Input material 10,000kg at cost of $100,000
Conversion cost $50,000

Normal loss 12% of material input.
Losses are sold at value of $5
Output 9200kg

What is the abnormal gain value that is credited to statement of profit and loss?

Bpp book answer

$100,000 + $500,000 – $6000/ 10,000 x 88% = 16.36

Abnormal gain cost

16.36 – 5 = 11.36

11.36 x 400kg = $4,545

Sir I don’t understand why they less $5 from $16.36.. They had already adjusted the cost per unit with normal loss value..why less $5 again

Please clarity that for me

Thank you.

[teshwar]

I need a study buddy you can contact me teshwar_dhanram@yahoo.com

[Author]

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