- February 28, 2022 at 11:23 am #649506shaunak22Participant
- Topics: 218
- Replies: 41
sir in 86 dusty company sum due to the new inventory policy when calculating the total cost of inventory under bulk purchase we found out the increase in average inventory and multiplied it with the finance cost and added that additional finace cost to the total cost of inventory
sir in 87 kxp company there is a similar situation a cmpany is considereding the cost of ordering inventory in bulk to avail the discount here in the solution when they have found out the e total cost of inventory under bulk purchase they haven’t found out the additional finance although there is an increase in average inventory still they havent added the additional cost of finance to the total cost of inventory like in dusty company?
DOUBT – why havent they added the cost of additional finance in case of kxp company
2) would mark be deducted if i didFebruary 28, 2022 at 4:28 pm #649519John MoffatKeymaster
- Topics: 56
- Replies: 51582
For KXP the Revision Kit has simply copied out the examiners own answers which didn’t take account of the additional finance cost. However if you had taken account of it then you would still have got full marks (assuming obviously that everything else was done correctly).
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