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  • TPC5 HC MDL XRCS

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    The document provides solutions to problems involving inventory costing and valuation using FIFO and WAC methods. For problem 5.2, it shows the inventory movement statement, analytical cost sheet, and product cost table using FIFO and WAC. For problem 5.3, it similarly provides the inventory movement statement, analytical cost sheet, and product cost table for a company with multiple products and production stages.

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    The document provides solutions to problems involving inventory costing and valuation using FIFO and WAC methods. For problem 5.2, it shows the inventory movement statement, analytical cost sheet, and product cost table using FIFO and WAC. For problem 5.3, it similarly provides the inventory movement statement, analytical cost sheet, and product cost table for a company with multiple products and production stages.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views14 pages

    TPC5 HC MDL XRCS

    Uploaded by

    dasdihhiasd
    The document provides solutions to problems involving inventory costing and valuation using FIFO and WAC methods. For problem 5.2, it shows the inventory movement statement, analytical cost sheet, and product cost table using FIFO and WAC. For problem 5.3, it similarly provides the inventory movement statement, analytical cost sheet, and product cost table for a company with multiple products and production stages.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 14

    TOPIC 5

    Solution of the problems


    PROBLEM 5.2. SOLUTION
    A) FIFO
    Incomings Outcomings Warehouse stocks

    400 kg 4€ 1,600 400 kg 4€ 1,600

    100 kg 3€ 300 100 kg 3€ 300


    200 4 800 200 kg 4€ 800
    100 kg 3€ 300

    The Inventory Movement Statement

    Beginning Pre-calc Incoming Outcoming Post-calc Ending


    Inventory differences stock stock differences Inventory

    --- --- 1,900 800 --- 1,100


    Raw Materials

    Work in 100 --- 50 100 --- 50


    progress
    --- --- 0
    Finished goods

    2
    PROBLEM 5.2. SOLUTION
    A) FIFO
    The Analytical Cost Sheet

    COST CENTRES
    SUPPLY PROCESSING TOTAL
    COSTS

    External Costs
    Raw Material 800 --- 800
    consumption

    External services 200 600 800

    Internal Costs
    Technical depreciation 100 200 300
    Total 1,100 800 1,900

    3
    PROBLEM 5.2. SOLUTION
    A) FIFO
    The Product Cost Table

    PRODUCT

    + BI work in progress 100


    + Supply 1,100
    + Processing 800
    = PRODUCT COST FOR THE 2,000
    PERIOD
    - EI work in progress 50
    = PRODUCT COST OF THE
    1,950
    FINISHED GOOD

    Go back to The Inventory Statement and fill in!!

    4
    PROBLEM 5.2. SOLUTION
    A) FIFO
    The Inventory Movement Statement

    Outcomin
    Beginning Pre-calc Incoming Post-calc Ending
    g
    Inventory differences stock differences Inventory
    stock

    Raw Materials --- --- 1,900 800 --- 1,100

    Work in
    progress
    100 --- 50 100 --- 50

    Finished goods --- --- 1,950 1,950 0

    Data obtained from The Product Cost Table

    5
    PROBLEM 5.2. SOLUTION
    B) WAC [(400kg x 4€)+(100 kg x 3€)] / 500 kg

    Incomings Outcomings Warehouse stocks

    400 kg 4€ 1,600 400 kg 4€ 1,600

    100 kg 3€ 300 500 kg 3,8 €

    200 3,8 € 760 300 3,8 € 1.140

    The Inventory Movement Statement

    Outcomin
    Beginning Pre-calc Incoming Post-calc Ending
    g
    Inventory differences stock differences Inventory
    stock

    Raw Materials --- --- 1,900 760 --- 1,140

    Work in
    progress
    100 --- 50 100 --- 50

    Finished goods --- --- 0

    6
    PROBLEM 5.2. SOLUTION
    B) WAC
    The Analytical Cost Sheet

    COST CENTRES
    SUPPLY PROCESSING TOTAL
    COSTS

    External Costs
    Raw Material 760 --- 760
    consumption

    External services 200 600 800

    Internal Costs
    Technical depreciation 100 200 300
    Total 1,060 800 1,860

    7
    PROBLEM 5.2. SOLUTION
    B) WAC
    The Product Cost Table

    PRODUCT

    + BI work in progress 100


    + Supply 1,060
    + Processing 800
    = PRODUCT COST FOR THE PERIOD 1,960

    - EI work in progress 50

    = PRODUCT COST OF THE FINISHED GOOD 1,910

    Go back to The Inventory Statement and fill in!!

    8
    PROBLEM 5.2. SOLUTION
    B) WAC
    The Inventory Movement Statement

    Outcomin
    Beginning Pre-calc Incoming Post-calc Ending
    g
    Inventory differences stock differences Inventory
    stock

    Raw Materials --- --- 1,900 760 --- 1,140

    Work in
    progress
    100 --- 50 100 --- 50

    Finished goods --- --- 1,910 1,910 0

    Data obtained from The Product Cost Table

    9
    PROBLEM 5.3. Solution

    The Inventory Movement Statement

    Beginning Pre-calc Incoming Outcoming Post-calc Ending


    Inventory differences stock stock differences Inventory

    Raw Material -90


    100 -10 600 500 100
    Work in progress
    40 20
    “A” 20 -- -- 40
    Work in progress
    54 30
    “B” 30 -- -- 54
    Finished goods
    “A” 100 -- 1,400 110
    Finished goods
    “B” -- -- 1,200 100

    10
    PROBLEM 5.3. Solution

    The Analytical Cost Sheet


    Cost
    centres Supply Process. Market. Admon. Sub-act Total
    Costs
    Extenal costs
    Raw mat. consumed 500 -- -- -- -- 500
    External costs 500 2,000 190 90 100 2,880
    Internal costs
    Depreciations 20 30 10 10 5 75
    Pre-calc. diff. raw material 10 -- -- -- 10

    Total 1,020 2,040 200 100 105 3,465

    60%-30%-10% 40%-50%-10% 50%-50% 50%-50%

    11
    PROBLEM 5.3. Solution
    The Product Cost Table
    Products
    Work c.o. for
    prod A prod B
    fixed asset
    Costs
    BI work-in-progress 20 30 --
    + Supply 612 306 102
    + Processing 816 1,020 204

    = PRODUCT COST FOR THE PERIOD 1,448 1,356 306

    - EI work-in-progress 40 54 --

    = PRODUCT COST OF THE FINISHED GOODS 1,408 1,302 306

    Go back to The Inventory Statement and fill in!!

    12
    PROBLEM 5.3. Solution

    The Inventory Movement Statement

    Beginning Pre-calc Incoming Outcoming Post-calc Ending


    Inventory differences stock stock differences Inventory

    Raw Material -90


    100 -10 600 500 100
    Work in progress
    40 20
    “A” 20 -- -- 40
    Work in progress
    54 30
    “B” 30 -- -- 54
    Finished goods
    “A” 100 -- 1,408 1,400 +2 110
    Finished goods
    “B” -- -- 1,302 1,200 -2 100

    Data obtained from The Product Cost Table


    13
    PROBLEM 5.3. Solution
    The Margin and Profit/Loss Statement

    Work carried out by the


    Product “A” Product “B” company for fixed
    assets

    +Revenue from goods sold // 5,000 3,000 306


    + Incomes from work c.o. for fixed assets

    - Product cost of goods sold 1,400 1,200 306


    = PRODUCT MARGIN 3,600 1,800 -
    - Commercial cost 100 100 -
    - Pre-calculated differences of finished goods - - -
    = COMMERCIAL MARGIN 3,500 1,700 -
    - Administration cost 50 50 -
    +/- Post-calculated differences of raw materials -45 -45 -
    +/- Post-calculated differences of work in progress - - -
    +/- Post-calculated differences of finished goods +2 -2 -
    +/- Absorption differences - - -
    = ANALYTICAL RESULT OF THE ACTIVITY 3,407 1,603
    - Sub-activity 52.5 52.5
    14
    = ANALYTICAL RESULT FOR THE PERIOD 3,354.5 1,550.5

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