Mangerial Accounting Assignment Essay Example | Topics and Well Written Essays - 2000 words

Mangerial Accounting Assignment - Essay ExampleAmount of any write-down protect of inventories that can be recognized as expense for the periodA further disclosure of the reversal or write down made to nett Realizable Value. The firm should also disclose the circumstance that led to such reversalCarrying Amount of inventories pledged as security for liabilitiesCost of inventories recognized as expenses This includes operating cost recognized by the nature of cost like raw materials and consumables, labour costs and other operating costs. These operating costs argon classified on the basis of nature of the costs and the amount of net change in inventories for the period.(b) Sylvester Sales LimitedGross Profit under bare(a) CostingDetailsYear 1Year 2Year 3 achievement Units240,000300,000180,000Sales Units200,000200,000200,000Price per Unit 262626Sales Value 5,200,0005,200,0005,200,000Variable costDirect Material and Labour costs 1,200,0001,200,0001,200,000Variable Overheads 800,000 800,000800,000Total Variable Costs 2,000,0002,000,0002,000,000Contribution 3,200,0003,200,0003,200,000Fixed Manufacturing Costs 800,000800,000800,000Gross Profit 2,400,0002,400,0002,400,000Gross Profit under Absorption CostingDetailsYear 1Year 2Year 3Production Units240,000300,000180,000Sales Units200,000200,000200,000Price per Unit 262626Sales Value 5,200,0005,200,0005,200,000Direct Material and Labr Costs...Inventories include assets representing fixed assets held for sale in the public course of business, assets in the issue process for sale in the ordinary course of business representing the work in process and materials and supplies that are consumed in production which covers the raw materials.In the valuation of stock, the standard cost and retail methods can be adopted. The only condition prescribed under the regulation is that the method of meter the cost should result in approximate actual cost of the inventory measured.For items that are interchangeable the regulations allows the First in First out (FIFO) method or Weighted Average Cost methods. However the regulation discontinued the measurement of inventory under Last in First out (LIFO) method.Cost of inventories recognized as expenses This includes operating costs recognized by the nature of cost like raw materials and consumables, labour costs and other operating costs. These operating costs are classified on the basis of nature of the costs and the amount of net change in inventories for the period.The year-wise gross profit figures as indicated in the borderline costing system shows identical profits irrespective of the different production levels.