Comments for Student Interactive http://www.aat-interactive.org.uk/student Just another WordPress weblog Mon, 15 Nov 2010 21:21:23 +0000 hourly 1 http://wordpress.org/?v=3.2.1 Comment on Unit 6 – Recording and evaluating costs and revenues – Labour Costs by Sandy Hood http://www.aat-interactive.org.uk/student/?p=261&cpage=1#comment-35 Sandy Hood Mon, 15 Nov 2010 21:21:23 +0000 http://www.aat-interactive.org.uk/student/?p=261#comment-35 Ogaufi All 45 hours worked should be costed at £20 to find the direct cost = £900 The 5 hrs over his normal week has a premium of £10 per hour. This payment is the indirect labour cost = £50 The total in many respects, is not important. The breakdown is needed to enable you to post the cost to the correct codes. So this would be correct 1. His direct labour cost £900 2. His indirect labour cost £50 Ogaufi
All 45 hours worked should be costed at £20 to find the direct cost = £900
The 5 hrs over his normal week has a premium of £10 per hour. This payment is the indirect labour cost = £50

The total in many respects, is not important. The breakdown is needed to enable you to post the cost to the correct codes. So this would be correct

1. His direct labour cost £900
2. His indirect labour cost £50

]]> Comment on Unit 6: evaluating costs and revenues – overhead costs (part 2) by SandyHood http://www.aat-interactive.org.uk/student/?p=308&cpage=1#comment-34 SandyHood Fri, 08 Oct 2010 11:46:01 +0000 http://www.aat-interactive.org.uk/student/?p=308#comment-34 could over/under absoption amount be posted directly to the P&L account? Yes Lyna, we could have a system that posts these entries straight to the P and L. The value of knowing the amounts over/under absorbed in each department and for each accounting period is that it highlights details that can be used by management. So the process has a control value as well as for financial reporting. could over/under absoption amount be posted directly to the P&L account?

Yes Lyna, we could have a system that posts these entries straight to the P and L.

The value of knowing the amounts over/under absorbed in each department and for each accounting period is that it highlights details that can be used by management. So the process has a control value as well as for financial reporting.

]]> Comment on Unit 6 – Recording and evaluating costs and revenues – Labour Costs by Ogaufi http://www.aat-interactive.org.uk/student/?p=261&cpage=1#comment-33 Ogaufi Tue, 07 Sep 2010 14:57:50 +0000 http://www.aat-interactive.org.uk/student/?p=261#comment-33 I am having a difficult time trying to understand calculation of overtime premium as an indirect cost. How do i deal with a question like the one below? John works 40 hours a week. During the third week of the month, he worked 45 hours. He earns £20.00 per hour and any overtime worked is paid at time and a half. Calculate: 1. His direct labour cost 2. His indirect labour cost I am having a difficult time trying to understand calculation of overtime premium as an indirect cost.

How do i deal with a question like the one below?

John works 40 hours a week. During the third week of the month, he worked 45 hours. He earns £20.00 per hour and any overtime worked is paid at time and a half.

Calculate:

1. His direct labour cost
2. His indirect labour cost

]]> Comment on Unit 6: evaluating costs and revenues – overhead costs (part 2) by lyna http://www.aat-interactive.org.uk/student/?p=308&cpage=1#comment-32 lyna Mon, 03 May 2010 15:02:09 +0000 http://www.aat-interactive.org.uk/student/?p=308#comment-32 hi, i could not understand: why we would need the under/over absorbed account for Moulding & Under-/Over-Absorbed Overhead Account, and when the over/under absobed amount is posted to the accounts, they are posted in the opposite column of those two accounts. As both accounts under the name of uner/over-aborbed, i first took it that Under-/Over-Absorbed Overhead Account is the control account of Moulding / Glazing etc under/over absorbed accounts. but as they are posted in opposite columns, i then think it would not be the case. Is it simply because for the double aspect of double entry accounting system to introduce both two accounts.Otherwise, could over/under absoption amount be posted directly to the P&L account? hi, i could not understand:
why we would need the under/over absorbed account for Moulding & Under-/Over-Absorbed Overhead Account, and when the over/under absobed amount is posted to the accounts, they are posted in the opposite column of those two accounts.
As both accounts under the name of uner/over-aborbed, i first took it that Under-/Over-Absorbed Overhead Account is the control account of Moulding / Glazing etc under/over absorbed accounts. but as they are posted in opposite columns, i then think it would not be the case.
Is it simply because for the double aspect of double entry accounting system to introduce both two accounts.Otherwise, could over/under absoption amount be posted directly to the P&L account?

]]> Comment on Unit 6 – Recording and evaluating costs and revenues, stock part 3 by lyna http://www.aat-interactive.org.uk/student/?p=131&cpage=1#comment-31 lyna Fri, 16 Apr 2010 12:53:15 +0000 http://www.aat-interactive.org.uk/student/?p=131#comment-31 here is my memo. could you comment on it. To: Ashley From: A Student Date: 6th July 2010 On 4th July, our stock valuation uses first-in-first-out(FIFO) method. 30 issues are valued at £9.00 out of 50. And it leaves us 20 packs @ £9.00 each and 20 packs @£10.75. So the balance on 4th is £395.00. Using the same method of valuation for 5th, 20 issues are valued at £9.00 each and leaves us 20 @ £10.75. So the value of the balance on 5th July is £215. At present, our stock record card indicates that we use different valuation methods. To ensure the consistency, I recommend we shall print the method name on top of the record card and train the new employ at the first day of their employment. here is my memo. could you comment on it.

To: Ashley
From: A Student
Date: 6th July 2010

On 4th July, our stock valuation uses first-in-first-out(FIFO) method. 30 issues are valued at £9.00 out of 50. And it leaves us 20 packs @ £9.00 each and 20 packs @£10.75. So the balance on 4th is £395.00.
Using the same method of valuation for 5th, 20 issues are valued at £9.00 each and leaves us 20 @ £10.75. So the value of the balance on 5th July is £215.
At present, our stock record card indicates that we use different valuation methods. To ensure the consistency, I recommend we shall print the method name on top of the record card and train the new employ at the first day of their employment.

]]> Comment on Unit 6 – Recording and evaluating costs and revenues, stock part 1 by SandyHood http://www.aat-interactive.org.uk/student/?p=42&cpage=1#comment-30 SandyHood Wed, 14 Apr 2010 13:15:16 +0000 http://www.aat-interactive.org.uk/student/?p=42#comment-30 16th August. There are 24 issues, so 14 are priced at £8.90 and 10 at £9.00. i dont understand where the figures 14 and 10 have come from. The closing stock on the 9th is made up of: 14 x £8.90 20 x £9.00 34 units in all. So when the next requisition is received on 16th asking for 24 units, then the units are issued on a FIFO basis the first are 14 x £8.90 and then to bring the total up to 24 another 10 are added from the 20 x £9.00 16th August. There are 24 issues, so 14 are priced at £8.90 and 10 at £9.00.

i dont understand where the figures 14 and 10 have come from.

The closing stock on the 9th is made up of:

14 x £8.90

20 x £9.00

34 units in all.

So when the next requisition is received on 16th asking for 24 units, then the units are issued on a FIFO basis
the first are 14 x £8.90
and then to bring the total up to 24 another 10 are added from the 20 x £9.00

]]> Comment on Unit 6 – Recording and evaluating costs and revenues, stock part 1 by SandyHood http://www.aat-interactive.org.uk/student/?p=42&cpage=1#comment-29 SandyHood Wed, 14 Apr 2010 13:09:53 +0000 http://www.aat-interactive.org.uk/student/?p=42#comment-29 There is a typo, please accept my apologies, where it says: the next 80 units issued will be issued at £8.90 each it should say the next 30 units issued will be issued at £8.90 each There is a typo, please accept my apologies, where it says:
the next 80 units issued will be issued at £8.90 each
it should say
the next 30 units issued will be issued at £8.90 each

]]> Comment on Unit 6 – Recording and evaluating costs and revenues, stock part 1 by SandyHood http://www.aat-interactive.org.uk/student/?p=42&cpage=1#comment-28 SandyHood Wed, 14 Apr 2010 13:07:15 +0000 http://www.aat-interactive.org.uk/student/?p=42#comment-28 I received this email today, and thought that the questions raised by nausheen may well be qustions other students might ask. i ve just started unit 6 recently and im really struggling with stock valuation and filling in the store ledger card. i have had alook at yr blog on the AAT websiteand some of it makes sense, but there are a few points i just cant seem to grasp, hope u will be able to help me. in yr first blog about stock valuation where u have used the FIFO method, you have written So as the stock at the end of 3rd August is made up of (first-in) 30 that cost £267, or £8.90 each then the next 80 units issued will be issued at £8.90 each. Once these have been issued the price will change to £9.00 (the unit cost of the 20 units bought costing £180.00). i get the first part regarding stock being made of 30 units costing £267 or £8.90 each, but then i dont understand the next bit where u have said the next 80 units will be issued at 8.90. where does the figure 80 come from? also 16th August. There are 24 issues, so 14 are priced at £8.90 and 10 at £9.00. This leaves a balance of 10 units at £9.00. Note, the total units as provided is shown and the total value of the issue is calculated, but (as in the balance on 3rd and 9th) no total given in the per unit column. i dont understand where the figures 14 and 10 have come from. sorry for sounding silly, hope u can help me as i really want to grasp this topic so i can get ahead with my studies thank you nausheen I received this email today, and thought that the questions raised by nausheen may well be qustions other students might ask.

i ve just started unit 6 recently and im really struggling with stock valuation and filling in the store ledger card. i have had alook at yr blog on the AAT websiteand some of it makes sense, but there are a few points i just cant seem to grasp, hope u will be able to help me.

in yr first blog about stock valuation where u have used the FIFO method, you have written

So as the stock at the end of 3rd August is made up of (first-in) 30 that cost £267, or £8.90 each then the next 80 units issued will be issued at £8.90 each. Once these have been issued the price will change to £9.00 (the unit cost of the 20 units bought costing £180.00).

i get the first part regarding stock being made of 30 units costing £267 or £8.90 each, but then i dont understand the next bit where u have said the next 80 units will be issued at 8.90. where does the figure 80 come from?

also

16th August. There are 24 issues, so 14 are priced at £8.90 and 10 at £9.00. This leaves a balance of 10 units at £9.00. Note, the total units as provided is shown and the total value of the issue is calculated, but (as in the balance on 3rd and 9th) no total given in the per unit column.

i dont understand where the figures 14 and 10 have come from.

sorry for sounding silly, hope u can help me as i really want to grasp this topic so i can get ahead with my studies

thank you

nausheen

]]> Comment on Unit 6: evaluating costs and revenues – overhead costs (part 1) by Karen Whitmore http://www.aat-interactive.org.uk/student/?p=275&cpage=1#comment-23 Karen Whitmore Tue, 09 Mar 2010 13:58:52 +0000 http://www.aat-interactive.org.uk/student/?p=275#comment-23 I am finding this blog really good, as in class its just not going in. Thanks Sandy and keep up the good work :0) I am finding this blog really good, as in class its just not going in. Thanks Sandy and keep up the good work :0)

]]> Comment on Unit 6 – Recording and evaluating costs and revenues – Labour Costs by SandyHood http://www.aat-interactive.org.uk/student/?p=261&cpage=1#comment-22 SandyHood Mon, 01 Feb 2010 12:26:30 +0000 http://www.aat-interactive.org.uk/student/?p=261#comment-22 Ali Well done. That was the observation I was looking for. It is a question of looking beyond merely recording the data. Who knows what the supervisor might find? Clearly he or she needs to investigate. It may well be an engineer's honest error. He could have had both jobs together and recorded the hours by mistake because he rushed on having finished. It might be deliberate, afterall the "over" budgeted time on one job does not incur any penalty whereas being "under" on the other earns him a bonus. We will await the supervisor's findings, but need to be aware of the issues if we see such a question on a skills test. Sandy Ali
Well done. That was the observation I was looking for. It is a question of looking beyond merely recording the data. Who knows what the supervisor might find? Clearly he or she needs to investigate. It may well be an engineer’s honest error. He could have had both jobs together and recorded the hours by mistake because he rushed on having finished. It might be deliberate, afterall the “over” budgeted time on one job does not incur any penalty whereas being “under” on the other earns him a bonus.
We will await the supervisor’s findings, but need to be aware of the issues if we see such a question on a skills test.

Sandy

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