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

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Inventory Valuation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Inventory Valuation

  • This topic has 5 replies, 3 voices, and was last updated 1 year ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 28, 2021 at 2:00 pm #636638
    James124
    Member
    • Topics: 158
    • Replies: 136
    • ☆☆☆

    In Kaplan, it is saying that unit cost method is used when inventory is of high value. Can you explain please?

    September 28, 2021 at 5:35 pm #636651
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51552
    • ☆☆☆☆☆

    This is not a rule – inventory can be valued at any of the ways described in my free lectures.

    However when inventories are of high value (such a expensive dresses in an expensive clothes shop) it may be more sensible to use the unit cost approach. I do explain this in my lectures.

    October 5, 2021 at 4:36 pm #637044
    youshaali
    Participant
    • Topics: 18
    • Replies: 31
    • ☆

    Hello sir!!!
    My question is:
    Edward co. Purchased some raw material inventory from a supplier at a list price of 6,000$. It got a settlement discount of $500 on this purchase.
    The raw materials have been converted into finished goods inventory by the process. The process cost $5,500 made up of $3,000 direct labor, $1,300 electricity cost, $500 attributable production overheads and $700 share of post-production storage cost. The finished goods will be sold for $14,000 after incurring selling cost of 10%.
    What is the value of finished goods inventory to be shown in Edward co.’s financial statement ?

    Please give me the answer and also tell me that what is post – production storage cost ?

    October 5, 2021 at 4:52 pm #637046
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51552
    • ☆☆☆☆☆

    Please do not simply type out full questions and expect to be provided with a full answer,

    You must have an answer to this question in the same book in which you found the question, and so ask about whatever it is in the answer that you are not clear about and then I will explain.

    Post-production storage cost is the cost of keeping the goods in the stores after they have been produced.

    I assume that you have watched my free lectures on the valuation of inventories?

    October 5, 2021 at 7:22 pm #637057
    youshaali
    Participant
    • Topics: 18
    • Replies: 31
    • ☆

    Ok sir thank you very much
    From now onward I will tell you answer too but my answer is 9000$.

    October 6, 2021 at 7:32 am #637101
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51552
    • ☆☆☆☆☆

    I think you have not included the electricity cost in the process.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

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

Subscribe to ACCA’s Student Accountant Direct

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..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • cBarsoum on Audit Risk – ACCA Audit and Assurance (AA)
  • allistair.a@gmail.com on Digital strategy – CIMA E3
  • John Moffat on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Statement of Cash Flows (part b) Example 1 – ACCA Financial Accounting (FA) lectures
  • cBarsoum on The Stages of an Audit – Appointment – ACCA Audit and Assurance (AA)

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


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy