From the information shown below which relates to component ABC, prepare statements using each of the following methods of stock accounting:

(i) weighted average cost

(ii) standard cost to show the following

(a) the amount to be charged to cost of production

(b) the value of the closing stock

(c) the difference, if any, between purchase cost and the aggregate of

(a) and (b)

Indicate how

(c) would be dealt with in the accounts.

Receipts Unit Issues to Market into stores cost production unit price May Units $ Units $

1 100 41 41 10 75 42 42 15 50 43 20 65 44 23 40 45 45 You may assume the company had no opening stock of component ABC and that in the case of method (ii) it is the company's practice to account for component ABC in terms of a standard unit cost of $40.
ACCA, FE8, part B. Paper 6, Accounting 2, Costing June 1976.
• Foundation Examination.