Reconcilations

AmyJ

i can't quite seem to figure out how to do this.. i have to reconcile one cost to another.. but how do i know which figures i need to use? I've looked at past exam paper but they all seem to compare standard with actual *something*, but the question i have is comparing Total Actual Prod Costs to Standard Absorption Cost of Actual Prod, and i can't seem to fin an example of this anywhere.
Thanks for any help.

Cyfarthfa

Hi Amy,

I think you might be referring to standard cost of actal prod to actual cost of actual production? To do this, take the standard cost of 1 unit and multiply by actual production. You then add on any adverse variances and take off the favourable. This should then give you your actual cost for actual production.

AmyJ

No, the question clearly states Calculate the total actual production costs and reconcile them to the standard absorption cost of actual production.
As i said i have not seen a question like this in any of the past exam questions.. could it just be a misprint maybe? :S

Cyfarthfa

which paper are you looking at and i'll have a quick look

AmyJ

Its this years mock exam paper.

Cyfarthfa

I haven't seen that yet so can't help on this one

DaveIOW

Is it not the variances in standard costing, it sounds like an umbrella term to work out variances ie material, labour & overheads then reconcile with standard costs.

Or are you doing Budget reconciliations?