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must show tge calculations Question 3 (a)Company B uses a traditional absorption costing system and absorbs production overheads on the basis of standard machine hours.
must show tge calculations Question 3 (a)Company B uses a traditional absorption costing system and absorbs production overheads on the basis of standard machine hours. The following are budgeted and actual information applied in its last accounting period: Production overhead Machine hours Units produces Budget RM750,000 125,000 50,000 Actual RM725,000 120,000 50,000 (1 (1 Required: Calculate the following: (0) Budgeted overhead absorption rate mark) (ii) Actual overhead rate mark) (iii) Actual overhead absorbed marks) (iv) Production overhead under / over-absorbed marks) (2 (2 (b)The following are details of stock purchased and sold in Company C between January and June of a particular year: May Bought Sold January 300 units at RM25 each March 250 units at RM30 each April 200 units at RM45 each 100 units at RM42 each June 200 units at RM 55 each Required: (i) Show calculations of stock valuation using the FIFO; LIFO; and AVCO methods using the perpetual system. (15 marks) (ii) In your opinion, how do companies determine the choice of stock valuation method to be used. Explain TWO (2) reasons affecting the choice with suitable examples. (4 marks)
must show tge calculations
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