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sir does the calculation of material variances with opening and closing inventory are examined in paper f2.
if expected can you please me the treatment of opening and closing inventory in calculation of material variances.Yes, it can be examined in Paper MA.
The expense variance is calculated on the actual purchases as usual.
The usage variance is calculated using the material actually used, which is the purchases as adjust by the opening and closing inventory. When adjusting the purchases, the inventories are valued at standard cost.
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