Closing inventories?? Unit 33

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
budgeted production is 4,000 per week, during each of the first two week, it had cost as follows
direct material 5,000
direct labour 9,000
fixed overheads 6,000
there is no finished goods in stock at the start of the week 1, in both weeks, it produced 4,000 units, sales in week 1 were 3,000 units, and in week 2 were 5,000 units, all at 8 pound per unit.
so what's the closing stock in week 1 using absorption costing and marignal costing??
i know am i being stupid by using 4,000-3,000=1,000 for closing stock, and answer using 5,000 as a closing stock for absorption costing in week 1 thanks

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  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    ahhh, i know now, need to use 1,000 x 5 =5,000
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