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Process & Operation Costing
Costing
answered on 25-Aug-25 14:33
In this question it has been mentioned that the no.of units scrapped were 200. But as per the suggested answer, while preparing statement of cost scrap worth 392 units(including the abnormal gain) has been deducted from materials. Why is that ?
latest answer
Normal loss is reduced as per expectation. Any abnormal gain is considered separately.
Parvathy Ajith
CA Inter
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1
123
CONDITIONS OF EOQ
Costing
answered on 07-Aug-25 15:29
Good Morining sir, I have a doubt regarding the EOQ condition. Economic Order Quantity is achieved technically when the ORDERING COST = CARRYING COST. but in the illustration 22, when we are calculating Total inventory cost @ EOQ,,, the condition is not satisfied. please explain this sir. TIME STAMP : 16:22 / 29:11 where carrying cost = 4,522 and Ordering cost = 4,600. why so? [Video Time Stamp: 272:01:03]
latest answer
Though mathematically they should come equal, there could be differences due to rounding off and also the order size cannot be same as EOQ.
Vinod Kumar
CA Inter
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161
ILLUSTRATION 20: NORMAL LOSS VALUE AND ABNORMAL LOSS VALUE
Costing
answered on 08-Aug-25 07:25
Sir, in this video we have followed the instruction as provided in the question step by step, which resulted in wirting down abnormal loss first with a value per unit as Rs. 282.04/- . after which the normal loss was written with subsequent revision in the rate per unit. my query is, had that normal loss written first in order and there after recording abnormal loss will simultaneously change the value per unit of abnormal loss to Rs. 293.32 /- , isnt it sir? so it it crucial to follow the step by step instruction as given in the question isnt it sir?. [Video Time Stamp: 13:53]
latest answer
i am attaching my workings, which is in line with the steps mentioned in the question.
Vinod Kumar
CA Inter
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3
151
ILLUSTRATION 20: CALC ERROR in stores ledger
Costing
answered on 07-Aug-25 12:18
Good evening sir, i guess there is a mistake in the calculation, on multiplying , we get 6625 >< 276.54 = 18,32,077.50 but you have mistakenly wrote an answer with 67.5 difference and 9000 >< 276.54 = 24,88,860, but you have wrote an answer with a difference of 68 please help! whether am i missing inside details in any calculation or it is really a calculation error [Video Time Stamp: 09:54]
latest answer
ok sir , thank you
Vinod Kumar
CA Inter
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4
147
Cost accounting system
Costing
answered on 06-Aug-25 18:48
Give answer of this question but Take a net loss as per cost accounting=9000 Refer my answer and as per my answer give me the raw material consumption amount
latest answer
bro can you extract the text of question and paste them as new query, because the images are not legible nor downloadable.
Snehal Tupe
CA Inter
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1
109
ILLUSTRATION 19: Question @ (iv) asking total annual carrying cost and Ordering cost.
Costing
answered on 06-Aug-25 18:42
sir am i correct to understand that the cost of carrying average inventory shall be = { (ROL + safety stock level) / 2 } >< Cost per unit i.e. = [(1350+450)/2] * 300 = Rs. 2,70,000 because this formula is the same as what we learned earlier in lectures, but seems to be differ from what we are learning now in the current lecture. [Video Time Stamp: 16:36]
latest answer
ok sir.
Vinod Kumar
CA Inter
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2
157
(ii) RE-ORDER LEVEL ([POINT)
Costing
answered on 06-Aug-25 10:39
Sir, You've used a formula for Re-order lever as = Safety stock + (avg lead time >< avg consumption) on the other hand we have previously studied the following formula 1} ROL= Max consumption >< Max lead time , {OR} 2} ROL = Min stock level + (avg consumption >< avg lead time) my doubt is, does minimum stock level represents the safety stock level? [Video Time Stamp: 12:36]
latest answer
oh very well. Thank you sir.
Vinod Kumar
CA Inter
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2
121
AVERAGE LEAD TIME
Costing
answered on 25-Aug-25 14:38
Sir, you've said that avg lead time is 6 days. {while calculating re-order level point in (ii)} why not 6.5 days, because, as given in question, max lead time the company assumes is 7 days @ 15% risk, and question says minimum day at which the stock would be received is 6 days, then the average should be in between 7 & 6 days right? [Video Time Stamp: 12:36]
latest answer
The question indicates that generally the product is received in 6 days - This is the average time. Using this input we are computing what is the order requirement if we are willing to take 15% risk.
Vinod Kumar
CA Inter
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129
ILLUSTRATION 18: Typo error in question - Need clarification
Costing
answered on 05-Aug-25 22:23
Good afternoon sir, i have attached the screenshot, highlighting the typpo error. in the highlighted area, both the sentences are same, but the explanation by sir is different for the second sentence. besides, i didnt understood sir's explanation given for that sentence. please Help ! [Video Time Stamp: 03:24]
latest answer
thanks, i understood sir's explaination lately.
Vinod Kumar
CA Inter
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2
130
illustration 17: Max stock level .vs. Re order level
Costing
answered on 06-Aug-25 11:45
sir, i have a specific doubt regarding the quantities that we have arived at, for Max Stock Lever and ROL. here, Max stock level = 83,500 Units & Re-Order Level = 94,500 Units if the maximum stock that we can economically hold is 83,500 units, then how can we make an order at 94,500 Unit? Yes i agree that the question mathematically arive at these figures, but as passive observer, i would like to know the key details of using Quantitative analysis in this question. Please share your perspective. [Video Time Stamp: 00:08]
latest answer
understood sir, Thank you very much for this clarity.
Vinod Kumar
CA Inter
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