Forum Replies Created
- Posts
This is the question sir, I was assisting
Cream Ltd produces a certain food Item in a manufacturing process. on 1 November, there was no opening stock of work in progress During November, 500 units of material were input to the process, with a cost of $9000.00. Direct Labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% of direct labour cost. Closing Stock 30 on November consisted of 100 units which were 100% complete as to material and 80% complete as to labour and overhead . There was no loss in the process.
Good day sir, I am sorry . I did not get this from a book . It was a question got from a tutor.
I worked it out as total cost 9000+7680+3840 =$20520
$20520/480 =$42.75480 equivalent units
then i had $42.75*480= $20520
This was wrong but i do not know right answer
I am a bit loss, there is also interest charged in p and l in the current year.
Added to that there is accrued interest in opening and closing year
are you saying they should all come together.
The interest receivable is under current asset indeed
If there is a revaluation
Does this extract, what you explaining by do not stop
Net profit £3,0000
Other comprehensive income
Building revaluation 50,000
Total comprehensive income £53,300In a cashflow question
Interest receivable are as follows
yr 1 yr 2
12 4
It shows a reduction in year two.
Does this affect to cash flow at all?thank you the question did have depreciation of $87,000 hence the acquisition value I got was $205,0000
opening 510,000
revaluation 60,000
Depreciation (87,000)
closing 688,000
Therefore acquisition changed to 205,000
Should I treat it as an inflow. It is a current asset so I am wondering if its an outflow.
I got 118 to be the extra for acquistion
688-570
can you verify thank you. thank for lectures
Good day sir can you illustrate the calculation for the terminal value. I cannot get an appropriate answer.
I Often get confused with depreciation and how it should be treat , in this question 125 depreciation allowable was minus before taxation and then later the depreciation was added back.
In a bpp answer only tax saving was added back. ( 31.3)
(6) Tax saving on tax depreciation
Years 1 – 4 1,250 × 0.1 × 0.25 = MP 31.25m per year
Year 5 value c/f = 1,250 × 0.6 = 750
Sale value = 500
Balancing allowance = (750 – 500) × 0.25 = MP 62.5mIs there a difference and can you explain
Thank you
