Materials and Labour Costs

Worked examples (10)

• 1FIFO closing inventory (5 marks)
• 2AVCO closing inventory (5 marks)
• 3Compare FIFO and AVCO on profit (5 marks)
• 4Perpetual AVCO with two issues (6 marks)
• 5Periodic AVCO (5 marks)
• 6Why FIFO raises profit in inflation (4 marks)
• 7Method affects timing, not total (4 marks)
• 8Advantages and disadvantages of JIT (5 marks)
• 9When JIT is suitable (4 marks)
• 10Lower of cost and NRV after the method (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 evaluation style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 evaluation style

Worked examples (10)

• 1Direct or indirect cost? (4 marks)
• 2Calculate prime cost and total cost (5 marks)
• 3Fixed and variable per unit (5 marks)
• 4Identify the cost behaviour (4 marks)
• 5High–low method (6 marks)
• 6Forecast cost with high–low (5 marks)
• 7Stepped cost (4 marks)
• 8Why fixed cost per unit falls (4 marks)
• 9Why classify by behaviour (5 marks)
• 10Cost statement with behaviour (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style
• ✓Model answer — 9706 Paper 4 style