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Sir, i didn’t understand the part b
Inventory calculation
I have done 1500unit*400 = $600000
But they have addded the variable cost why sir??
Trade payable they have taken $600000
Why they have not include that $150000 variable cost ? SirPart d
Sir why they have increase income of $24000000*20%= $4800000
They have only told to increase the credit sale by 24000000*1.2= 4800000
And also the net profit by 10% is it benefit??You must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
Inventory should be valued at the full cost of production (this is from Paper F3). Given that note 4 of the question says that the variable overheads are incurred during production they should be included in the cost.
Note 4 also says that the variable overheads and wages are paid in the month of production, so there is nothing owing at the end of each month.
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