• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams : Get your discount code >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers

Calculation of PUP.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Calculation of PUP.

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 10, 2022 at 11:50 am #662830
    mahi819
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    Harry acquired an 80% holding in Style on 1 April 20X6. From 1 April 20X6 to 31 December
    20X6 Style sold goods to Harry for $4.3m at a mark?up of 10% Harry’s inventory at 31
    December 20X6 included $2.2m of such inventory. The statements of profit or loss for each
    entity for the year to 31 December 20X6 showed the following in respect of cost of sales:
    Harry $14.7m
    Style $11.6m

    What is the cost of sales figure to be shown in the consolidated statement of profit or loss
    for the year to 31 December 20X6?

    A $18,900,000
    B $20,200,000
    C $19,100,000
    D $19,300,000

    Answer

    D
    Cost of sales = $14.7m + $8.7m (9/12 × $11.6m) – $4.3m (intra?group sale) + $0.2m (PUP) =
    $19.3m

    The PUP is $2.2m × 10/110 = $0.2m.

    If you chose B, you have not time?apportioned the results. If you chose A you have deducted
    the PUP rather than adding it. If you chose C, you have missed the PUP.
    I want to know how to calculate PUP in this question?

    August 13, 2022 at 8:06 am #662996
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6702
    • ☆☆☆☆☆

    Hi,

    The PUP is based upon the 10% mark up given in the question. Where we have a mark-up the profit is 10% (10/100) of the costs. The sales will therefore be 110% of the costs (110/100) and so the profit is 10/110 of the sales figure given.

    This is knowledge brought forward from Management Accounting.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA Qualification syllabus changes for 2023/24

Need verifiable CPD for 2023? 21 units of FREE CPD on offer from ACCA

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

PQ Magazine

Latest comments

  • John Moffat on Inventory Control (part 1) The EOQ Formula – ACCA Management Accounting (MA)
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • fruitella on Inventory Control (part 1) The EOQ Formula – ACCA Management Accounting (MA)
  • sanjarmakh on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • rossy981 on Statutory Interpretation Presumptions, Delegated Legislation – ACCA Corporate and Business Law (LW) (ENG)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in