The following data have been taken from the books of CB plc, which uses a nonintegrated accounting system:

The effect of these stock valuation differences on the profit reported by the financial and cost accounting ledgers is that:

(a) the financial accounting profit is £300 greater than the cost accounting profit;

(b) the financial accounting profit is £200 greater than the cost accounting profit;

(c) the cost accounting profit is £300 greater than the financial accounting profit;

(d) the cost accounting profit is £900 greater than the financial accounting profit;

(e) the cost accounting profit is £2100 greater than the financial accounting profit.
(2 marks)
CIMA Stage 2

Transcribed Image Text:

Financial accounts Cost accounts () () Opening stock of materials 5000 6400 Closing stock of materials 4000 5200 Opening stock of finished goods 9800 9600 Closing stock of finished goods 7900 7600