Investor Presentaiton
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Measurement
Total ending inventory
Total POH recognized as part of ending inventory
Total fixed POH
Total variable POH
Total POH
Absorbed to ending inventory
Total POH recognized as an expense
Reconciliation:
Total fixed POH
Absorbed fixed POH
Fixed production OAR
2,300 Units
1,380 CU
1,500 CU
2,600 CU
4,100 CU
(1,380) CU
2,720 CU
1,500 CU
Actual hours for year
Unabsorbed fixed POH ---- (1)
Absorbed total POH
Total POAR
Units sold from during year production
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Measurement
Cost formulas:
0.20 CU/hour
6,500 hours
1,300 CU
200 CU
0.60 CU/unit
4,200 units
2,520 CU
2,720 CU
(i) Specific identification
Specific costs are attributed to identified items of inventory
(ii) First In First Out (FIFO)
Assumes oldest inventories are used up first, so that the cost
attached to those items still held at the balance sheet date is
at the most recent cost incurred.
(iii) Weighted Average Cost
Cost is based on an average price computed by dividing the
total cost of units by the total number of such units.
10/31/2016
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