Answered step by step
Verified Expert Solution
Question
1 Approved Answer
108,000 kg of raw materials are held in inventory at the year end. a) Calculate the cost of the raw material inventory at 31 July
108,000 kg of raw materials are held in inventory at the year end. a) Calculate the cost of the raw material inventory at 31 July 2022 based on a first in first out (FIFO) approach 2 marks Metal prices drop suddenly towards the year end, and the cost of 1 kg of metal at 31 July 2022 is now only 28p. b) State the amount of the write-down, if any, required to the above valuation of the raw material inventory. 2 marks Production costs The entity achieved its budgeted level of production for the year, being 580,000 finished units and a further 50,000 units that are 40% complete. The production costs for the period were: Raw materials Direct labour Factory overheads Distribution costs 200,000 150,000 100,000 80,000 Page 5 of 7 c) Calculate the cost of producing 1 unit of finished good. Provide your answer to the nearest pence. 2 marks Total 6 marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started