The following data have been taken from the books of CB pie. which uses a non-integrated accounting system:

Opening stock of materials Closing stock of materials Opening stock of finished goods Closing stock of finished goods Financial accounts

£

5,000 4.00 9.800 7.900 Cost accounts

£

6.400 5.200 9.600 7.600 The effect of these stock valuation differences on the profit reported by the financial and cost accounting ledgers is A the financial accounting profit is £300 greater than the cost accounting profit.

B the financial accounting profit is £2.100 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 £2. 100 greater than the financial accounting profit.
CIMA. Stage 2, May 1996.

AppendixLO1