Material- & Labour Cost

Question 1

First-in-first-out (FIFO)

Answer 1

Assumes price of items RECEIVED earliest is price @ which items are ISSUED first

Question 2

Weighted average cost method (AVCO) formula

Answer 2

(Inventory VALUE transferred + VALUE of purchases) / (QUANTITY of stock transferred + QUANTITY purchased)

Question 3

In continious stocktaking inventory is monitored?

Answer 3

Continiously

Question 4

Continious stocktaking leads to?

Answer 4

More accurate counting & differences in stock levels that are discovered and addressed faster

Question 5

Continious stocktaking has a significant advantage over?

Answer 5

Annual inventory because of less time pressure

Question 6

In continious stocktaking it is Possible to conduct?

Answer 6

Continious inventory

Question 7

in continious stocktaking where do the records of purchases and issues appear?

Answer 7

In the system & actual inventory levels that are always available

Question 8

Periodic stocktaking

Answer 8

• Done on specific date
• In direct contrast to continious stocktaking
• Physical count of inventory
• Look @ the total instead of the specific receipt

Question 9

Leave

Answer 9

Number of days Leave x Hours in normal day x PMT per hour

Question 10

Journal Entry

Amount provided as leave PMT is TREATED AS employer contributions

Answer 10

Dr Wage Control
Cr Leave Provision

Question 11

Journal Entry

Amount paid out as leave PMT (INCLUDED in wage statement as part of gross wage)

Answer 11

Dr Leave provision
Cr Wage control