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in method 4, an amount based on productivity, when calculating the basic pay how do we get the 45?
very welcome. feel free to ask here or on my skype.
this is a great site which helped a lot.. so i try to do the same in return
First in, first out.
A way of valuing inventory. So, assuming no opening inventory:
1/1/2015 Buy 1000 units @ $4 each
15/1/2015 Buy 800 units @ $5 each27/1/2015 sell 700 units.
There will be 1,100 units left. Under FIFO the 700 sold are assumed to be taken from the purchases made 1/1/2015. So the cost of closing inventory is:
(1,000 – 700) x 4 + 800 x 5 = 5,200
after valuating the stock using fifo, lifo and avco, how can you account for the totals
it depends what u want to do.
for the financial statements u can not use lifo.
4. llustration
Basic pay = $9/hour for a 40 hour week.
Normal production in that time = 120 units
Bonus = 50% of the time saved on production paid at time and a third
What will be the total wage in a week in which 150 units are made in 40 hours?
A n s w e r
$
Basic pay = 40 x $9 450
150 units should take 50 hours
150 units did take 40 hours
Hours saved 10 hours
Bonus = 50% x 10 x 9 x 1 ?=60
Total pay 510thats mistake over there right ?
basic pay should be 40×9 = 360
total pay will be 420am i right ?
in chapter 5 sub heading 3
under
Fixed costs: constant over a wide range of activity
there is line,
Note that the “””””cost per unit will decrease as the activity level decreases””””””. For example, say
that the rent was $10,000 and 1,000 units were made. Then you could argue that it takes
$10 rent to make a unit ($10,000/1,000).thats mistake right ? it should be,
cost per unit will decrease as the activity level increases.
or
cost per unit will increase as the activity level decreasesYou are correct: cost per unit will decrease as activity levels increase. Apologies and well spotted.
Your point on pay is also correct.
We will correct these errors as soon as possible.
How many decimal points do we need to take for every new cost per unit when counting cumulative weighted average pricing
Hi there, I’ve read through the notes in Chapter 8 Labour Costs and Remuneration Methods, Page 62.
I’m guessing that the errors have already been corrected ?
Thanks.
In this chapter example 1,
The solution to the example provided was:Note: each unit is expected to take 40/80 = 0.5 hours
Was it supposed to be like this:
80/40 (Units divided by hours)
I’m kind of confusedNo, the answer is right. If you make 80 units in 40 hours, each unit must take 0.5 hours. We are not working out units per hour; we are working out hours needed for each unit.
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