Pls Pls Help urgent

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Hi can anybody help me pls part finished and finished goods
Direct Materials used £22,000
Direct Labour £15,000
Production overheads £8,000
Non Production Overheads £4,000
Total cost for year £49,000
2000 units sold, 200 in stock finished, 25 part finished
(half in terms of material labour and production overheads)

Net realisable value of £38

Calculate 1. Part finished goods 2. finished goods

Can t find formula anywhere and i have the books for units 6 and 7 I don t want the answer just an explanation thanks :-)

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pls Pls Help urgent

    I think is something to do with process costs. You need to look up work in progress (WIP) and closing stock. This is covered in the unit 6 book that BPP publish.

    Can't remember right now how exactly to do process cost by the book should help.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Pls Pls Help urgent

    You have the equivalent of 12.5 finished goods if the 25 units are half finished
    So the production was 2000 + 200 +EU12.5

    These cost all the production costs to make

    So you can work out the production cost per unit

    Then multiply by the appropriate stock to find the value

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