how'd everyone go?

[xharax]

underneath the invoice it specifically said insurance and delivery is allocated as product cost~~O.O maybe u ignored that, should of highlighted it

[_avO]

It was something like XX.20 (20 cents)

[mmmmm]

underneath the invoice it specifically said insurance and delivery is allocated as product cost~~O.O maybe u ignored that, should of highlighted it

I didn't include it. Because it worked out to be 20 cents each...

[xharax]

i remember i got 12.2 for that question...but it was only worth 1 mark~not gonna drop u a whole grade^_^ l'm just waiting for the suggested solution

[Stormer]

21.20

[Chavi]

what was the answer to the question that had the insurance and delivery costs listed on the invoice, and said the accountant made it a product cost and then asked you to work out the cost of a individual item? were we meant to use product or period? I am not sure if it was a little trick question..

It simply asked for the effect on profit if you were to treat all additional costs as product and/or period....

My answers for this question (1.5.2) were basically:

If all expenses are written off as period costs, then profit is understand, as not all stock has been sold, and the extra amt has yet been consumer/expensed

If all expenses were product costs, then profit will be slightly higher, as only the amount consumed is written of as cost of sales.

[Chavi]

21.20

Same

[chap]

yeh same but I thought they said that to trick us and the accountant made a mistake...hmmmm

[chap]

also, do you need to put dates on the reconstructions?

[Stormer]

what was the answer to the question that had the insurance and delivery costs listed on the invoice, and said the accountant made it a product cost and then asked you to work out the cost of a individual item? were we meant to use product or period? I am not sure if it was a little trick question..

It simply asked for the effect on profit if you were to treat all additional costs as product and/or period....

My answers for this question (1.5.2) were basically:

If all expenses are written off as period costs, then profit is understand, as not all stock has been sold, and the extra amt has yet been consumer/expensed

If all expenses were product costs, then profit will be slightly higher, as only the amount consumed is written of as cost of sales.

Not all additional, just Insurance. I said if it were a period cost, Net Profit would be $100 lower than if Product Cost were used as Period Cost includes the entire $200. With Product Cost, it only includes $100 of Insurance Expense within it (the stock) because half the items were sold.

[_avO]

It asked about insurance and the spray, so it would be understated $600, or did I do something wrong?

[Stormer]

My apologies. Mistake on my behalf, $600 would be right

However, I don't think numbers would have been crucial, you may have (Im hoping) gotten away with just mentioning the half for product and full for period.

[_avO]

What did you guys talk about for the difference between profit and profitability?

[sooeyy]

Did anyone actually take the liberty to draw out a sales journal in the last question? Haha, and I used the cost of sales from the previous budgeted reports to find mark up, assuming that there is a constant mark up..
I dunno, who else drew a sales journal, and just did it normally?

[Albeno69]

What did you guys talk about for the difference between profit and profitability?

profit is difference revue less expenses were profitability is ability to pay short term debts, obviously expanded on that though