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Question 18.15 from BPP
I’m trying to solve this question but my workings leads to nowhere . Can you pls help ?
Production
Variable ( 17500 x 16$ x 3/4 ) 210.000Fixed (17500 x 16$ x1/4) 70.000
Closing inventory ( 2500 x 16) 40.000
The answer show 2500 x 4$ = 10.000$
But when we value closing inventory , we should value it at full cost ( fixed and variable ) ?
Thanks Mr John
Ah I understood now . As I just rewatch your lecture …
One value at variable and fixed cost
Another one values at variable only
So the difference is the fixed costThank you Mr John ?
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