Master
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<BR>Not sure what they are asking from this but I presume it would be the difference between standard cost of closing stock and actual cost of closing stock????<BR><BR><BR> Stock purchased 450,000 metres<BR> Less actual stock used (301,000) metres<BR> =========<BR> Closing stock 149,000 metres (raw materials)<BR><BR><BR> Actual 'finished goods' would be 149,000 metres/10 metre rolls = 14,900 Mirage rolls<BR><BR> Standard = 14900 rolls @ £1.01 = £15,049.00<BR><BR> Actual = 14900 rolls @ £1.20 = £17,880.00<BR> =========<BR> Variance stock £ 2,831.00<BR><BR><BR> I'm really not sure wether this is what they are asking for in question - please can someone <BR> confirm is this is right!!!??<BR>
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Master
I disagree<BR>The question asks forthe valuation of <b>finished goods stock</b> not one of the materials used to make it<BR>How does an absoption <i>of overheads into product cost</i> approach differ from a marginal one?0 -
Master
My understanding from the task is that 30,000 rolls were produced and there was a closing stock of paper only. It doesn't say if this is exclusively for Mirage but it does say that only Mirage was produced for November and it is only November's production we are looking at. So, I think, there are 30,000 rolls of Mirage waiting to be sold and 149,000 of raw material white paper in stock which may or may not be used for Mirage in another period.<BR><BR>I understand how to calculate the standard cost of the paper in stock and the actual cost but don't understand how it fits into the task as it is the actual manufacture of Mirage that we are looking at.<BR><BR>Sorry if I'm being thick just can't seem to grasp this and worried I will misinterpret on Monday.<BR><BR>0 -
Master
I think this might be easier to explain by phone<BR>I emailed you my number0 -
Master
Please could you send me a copy of masterclass, as I havent a clue about stock variances we havent covered them in class and theres 2 days to go! Help! please0