Phew! ECR done
Comments
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We good!!!! Must say if you did the same as me taking the variable bit of semi-variable out before calculating absorption rates that was wrong. I checked and same came up last june - not meant to take it out. Poo. But hey, only 2 questions wrong there and will still get marks for principle on calculations even if the rates were wrong. Wine is good but really gone to my head!!!!!
I can't properly remember but i think out of the 90,000 i took fixed costs of 30,000 out and allocated these and then did the apportioning with the variable.0 -
Of wht I remember:
FIFO as it increases stock valuation in times of rising costs...
Break even I calculated by using the PV ratio(5/8 = 0.625)...
so break even sales revenue= 312500/.625= £500,000
Margin of safety in terms of sales revenue= 875,000-500,000 = £375,000
Margin of safety as %= (375,000/875,000) x 100 = 42.86%
Graph 1 : semi variable cost
Graph 2: Stepped fixed cost
Normal loss = 12 tonne abnormal loss= 28tonne
expected output = 388 tonnes
Cost of unit output : (73960-240) / 388 = £ 190
In the process account Dr side = 73960
Cr Side
Normal loss = 240
Abnormal loss 28 x 190 = 5320
Finished output 360 x 190 = 68400
Total =73960
Pay back period: 2.125 yr ~2yrs 2 months
NPV IN £000 = 39.72
Same here, so either we're both right or we made the same mistakes. :001_smile:0 -
Of wht I remember:
FIFO as it increases stock valuation in times of rising costs...
Break even I calculated by using the PV ratio(5/8 = 0.625)...
so break even sales revenue= 312500/.625= £500,000
Margin of safety in terms of sales revenue= 875,000-500,000 = £375,000
Margin of safety as %= (375,000/875,000) x 100 = 42.86%
Graph 1 : semi variable cost
Graph 2: Stepped fixed cost
Normal loss = 12 tonne abnormal loss= 28tonne
expected output = 388 tonnes
Cost of unit output : (73960-240) / 388 = £ 190
In the process account Dr side = 73960
Cr Side
Normal loss = 240
Abnormal loss 28 x 190 = 5320
Finished output 360 x 190 = 68400
Total =73960
Pay back period: 2.125 yr ~2yrs 2 months
NPV IN £000 = 39.72
this is what i got also:001_smile:0 -
I can't properly remember but i think out of the 90,000 i took fixed costs of 30,000 out and allocated these and then did the apportioning with the variable.
Oh I i did all that too - not worried about the allocation/apportionment bit. It was the next question where you had to do the absorption rate that I messed up. I took the variable part out of the total overheads figure before calculating the rate. Which apparently isn't right. darn it.0 -
Did anyone notice if the paper said how many marks each question was worth?0
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no....0
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Oh I i did all that too - not worried about the allocation/apportionment bit. It was the next question where you had to do the absorption rate that I messed up. I took the variable part out of the total overheads figure before calculating the rate. Which apparently isn't right. darn it.
Oh dear, no i didnt do that. Never mind, hopefully you got the rest of the paper correct. If not im also back in december for a resit by the sounds of it lol.0 -
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draindoctor@ntlworld.com wrote: »Should it be 2 years and 1.5 months?
I put 3 months coz i was blinded by the 25 and assumed it was 25% of a year - was bogged eyed but found out after itsthe amount remaining divided by amount paid x 12
so 25/200 = 0.125 * 12 = 1.5
That's what I put :001_smile:0 -
I agree totally! I thought this was my "better" unit so god help us on Wednesday :eek:0
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draindoctor@ntlworld.com wrote: »Should it be 2 years and 1.5 months?
I put 3 months coz i was blinded by the 25 and assumed it was 25% of a year - was bogged eyed but found out after itsthe amount remaining divided by amount paid x 12
so 25/200 = 0.125 * 12 = 1.5
think thats what i put, need to stop reading everyone elses answers, its making me worry what i put :001_rolleyes:0 -
I did that way.
0.8 less 0.3 gave me 0.5 as a contribution.
So divided fixad cost by 0.5 gave me 625000 revenue.
Make profit: (fixed cost + expecting profit)/contribution = 1025000
I did all losses nearly like many of You but I didnt call this abnormal and normal and I calculated cost per tonne as at: 73960/400=184,9 but then i calculated by 388 which gave me 190, but in account I put on denit 400 and on credit side 28 then 360 and then 12 and (!!!!) called as P+L. My fault:thumbdown:
Anyway looking forward to being surprised by FRA :laugh:0 -
I'm off to revise the numbers of the ssap's that go with the rules for Wednesday,can't seem to gt them to sink in. Good luck with FRAs everyone!x0
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I didn't get 2 years 1 month - I thought it was (95ish) negative with the cash flow in year 3 of 135 - therefore about .7 of a year? (95/135) about 2 years 8 months. (39K NPV ish) but with a sub note about the £50000 not coming in until the end of year 3... I think there must have been two papers!! lol...0
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Hi,
I got 2.125 years for the payback or 2 year and 1.5 months for the payback period. Is this right? Could I lose marks for not rounding if it is right.....:001_unsure:0 -
Oh dear, no i didnt do that. Never mind, hopefully you got the rest of the paper correct. If not im also back in december for a resit by the sounds of it lol.
Don't worry i'm sure you'll be fine! I'm hoping I won't fail the entire paper over that mistake so hopefully won't need to resit... I don't think I made any other major mistakes (fingers crossed) so still hopeful!!!!! Stay positive!!!!0 -
Study materials
Hi guys
Pls tell me if the study materials are valid for only 18 months ????!!!
Is this correct?:ohmy:0 -
CrazySexyCool wrote: »I got 3 years, 2months
I am glad u put 3ys too.
I put 3 yrs 1 mth.
All of my mates put 2yrs 1mth, so know therefore got it completly wrong :mad2:0 -
Hmm.
Some I found simple, and some threw me. I've munged the process T account, and I think I used the target profit sales revenue instead of the break-even sales revenue when working out the margin of safety. It's a good job I showed lots and lots of working. I think most of the rest was OK. Shouldn't be too bad - I mean, if you can pass a financial paper without getting the trial balance to balance, I should be OK with this one? Right?0 -
I feel like crying!! I shouldn't have looked on here, I've made silly mistakes, not reading the questions properly ie breakeven/sales revenue!! Oh well can't change now what I've written.
On a plus note, we received our sim results for the ECR after our exams and I passed, no additional questions :-)
Not looking forward to the FRA on Wednesday at all!!! I really need a light bulb moment but can't see me getting one before then.
Good Luck all!!0 -
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Abnormal loss is always at the same cost as output, so 190.0
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On the process account, did the labour and overhead costs go on two seperate lines on the debit side?0
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I did that way.
0.8 less 0.3 gave me 0.5 as a contribution.
So divided fixad cost by 0.5 gave me 625000 revenue.
Make profit: (fixed cost + expecting profit)/contribution = 1025000
I did all losses nearly like many of You but I didnt call this abnormal and normal and I calculated cost per tonne as at: 73960/400=184,9 but then i calculated by 388 which gave me 190, but in account I put on denit 400 and on credit side 28 then 360 and then 12 and (!!!!) called as P+L. My fault:thumbdown:
Anyway looking forward to being surprised by FRA :laugh:
i got 625000 for breakeven and 1025000 for target profit as well.Everyone else seems to have different answers to me and you breakeven and MOS.0
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