tazzy Registered Posts: 2 New contributor 🐸
can anyone explain how to do the opening and closing stocks when doing an operating statement thanks.


  • LouLou143
    LouLou143 Registered Posts: 74 Regular contributor ⭐
    Don't forget that opening and closing stocks are only for absorption costing in the operating statement - As you adjust for it in marginal costing if sales and production are different.

    Closing Stock - You have to work out the cost of production (materials and labour etc) and divide by the gross production sales figure. Then multiple by how much you have in closing stock in your production figure...


    Sales 1840
    opening stock (200)
    clsoing stock 360

    Materials = £100,000
    Labour = £32,000
    Oveheads = £16,000
    TOTAL = £148,000

    So £148,000/2000 x 360 = £26640 cost of closing stock.

    They will always give the cost of opening stocks. But it would be the same principle but based on last years/quarters figures.

    Hope this helps
  • sjf
    sjf Registered Posts: 5 New contributor 🐸

    Thank you LouLou143 :thumbup1:
    I was stuck on that too, and I was not looking forward to exam after Mondays PEV.
  • LouLou143
    LouLou143 Registered Posts: 74 Regular contributor ⭐
    No problems - not looking forward to it either to be honest.....I have done most of the past papers and things keep turning up in them that we haven't been taught!!!
Privacy Policy