The following data have been taken from the books of CB plc, which uses a non-integrated accounting system:
|
Financial accounts £ |
Cost accounts £ |
|
|
Opening stock of materials |
5000 |
6400 |
|
Closing stock of materials |
4000 |
5200 |
|
Opening stock of finished goods |
9800 |
9600 |
|
Closing stock of finished goods |
7900 |
7600 |
The effect of these stock valuation differences on the profit reported by the financial and cost accounting ledgers in that:
A the financial accounting profit is £300 greater than the cost accounting profit.
B the financial accounting profit is £2100 greater than the cost accounting profit.
C the cost accounting profit is £300 greater than the financial accounting profit.
D the cost accounting profit is £900 greater than the financial accounting profit.
E the cost accounting profit is £2100 greater than the financial accounting profit.