Reconcilations

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AmyJ
AmyJ Registered Posts: 3 New contributor 🐸
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.

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  • Cyfarthfa
    Cyfarthfa Registered Posts: 62 Regular contributor ⭐
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    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
    AmyJ Registered Posts: 3 New contributor 🐸
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    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
    Cyfarthfa Registered Posts: 62 Regular contributor ⭐
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    which paper are you looking at and i'll have a quick look
  • AmyJ
    AmyJ Registered Posts: 3 New contributor 🐸
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    Its this years mock exam paper.
  • Cyfarthfa
    Cyfarthfa Registered Posts: 62 Regular contributor ⭐
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    I haven't seen that yet so can't help on this one
  • DaveIOW
    DaveIOW Registered Posts: 85 Regular contributor ⭐
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    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?
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