Progit statement from costing?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Hi,

Having successfully completed the Foundation level, i now find myself in the wilderness of intermediacy,

I am studying costing direct/indirect manufacturing accounts and have been asked to prepare a profit statement, any ideas?

Thanks in advance,

Ben.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    Do you have a specific query?

    No offense but its like saying im studying biology - any ideas?

    Maybe someone else can summarise it.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    Lincs - biology is easy to summarise - its the birds and the bees and where little babies come from :lol:

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    I don't think so everyone knows stalks bring them along.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    stalks or storks :lol:

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    ok you got me, but look out i'll be watching you now 8)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    And who says accountants have no sense of humour? :twisted:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    I think he was asking how to go about preparing a profit statement - seemed pretty specific to me.

    I can't remember and am too comfortable in bed right now to go look it up - maybe in the morning.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Progit statement from costing?

    A Profit Statement is just

    £
    Sales Rev. x
    Less
    Total Cost (x)

    Profit/(loss) x

    It normally follows on from the Cost statement

    £
    Direct Mat. x
    Direct Lab. x
    Direct Exp. x
    = Prime Cost x
    Prod Exp x
    =Prodn Cost x

    Non Prodn Exp x

    = TOTAL Cost xx

    The Format should look a lot neater than that but it wont let me! There should be an example in your tutorial book.

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