Review - the road so far

What is the formula to calculate the total raw material cost for the year?

• Opening raw materials / Purchases + Closing raw materials

• Opening raw materials x Purchases / Closing raw materials

• Opening raw materials + Purchases - Closing raw materials

• Opening raw materials - Purchases + Closing raw materials

What is the definition of an asset according to the Conceptual Framework?

• An intangible economic resource controlled by the entity

• A potential economic resource controlled by the entity

• A present economic resource controlled by the entity as a result of past events

• A future economic resource controlled by the entity

What is the formula to calculate the manufacturing cost for the current year?

• Raw materials + Direct labour costs + Factory overheads

• Raw materials - Direct labour costs + Factory overheads

• Raw materials x Direct labour costs / Factory overheads

• Raw materials / Direct labour costs + Factory overheads

What is the formula to calculate the manufacturing cost per unit?

• Total manufacturing cost + Units manufactured

• Total manufacturing cost - Units manufactured

• Total manufacturing cost x Units manufactured

• Total manufacturing cost / Units manufactured

Which one of the following statements is incorrect

• Control links an economic resource to an entity

• For the potential to produce economic benefits to exist, it has to at least be likely that the right will produce economic benefits

• A right can be an obligation of another party

• A past event had to have occured for an asset to exist

What is the significance of control in accounting?

• It links an economic resource to an entity

• It determines the value of an asset

• It impacts the liabilities of a company

• It is not relevant in accounting

When using the weighted average method to determine cost while using the perpetual inventory system, you will recalculate the weighted average cost after each purchase

• True

• False

When using a T account to calculate Inventory losses, Inventory losses will be your _________ figure