PCR June 07 Exam

Odyssey Registered Posts: 6 Regular contributor ⭐ 😼 ⭐
Hi all,
I'm hoping someone can clarify some things for me that have got me really confused with the June 07 PCR exam answers.

Has anyone else noticed that the model answers for this exam have changed twice in the last week? They changed to a new set of answers and have now reverted back to the original answers. The only changes related to Q1.1g and Q1.2a iv. These are also the questions I'm having some problems with.

I thought that opening and closing stock were added/taken from cost of production in order to get cost of sales. This is then deducted from turnover to give profit.
But the exam answers show the cost of production being deducted from turnover before stock is taken into account, and then the stock figures are added/taken from this figure.

If anyone can understand what I am trying to ask please can you help me. This has thrown everything I thought I knew and I'm now really worried about the exam this week.
Thank you.


  • birdie
    birdie Registered Posts: 3 New contributor 🐸
    PCR June 2007 exam

    I know what you mean, I'm having the same problem with it!! i spend all last night trying to figure out what was going on!?!:confused1:
  • Celtic Angel
    Celtic Angel Registered Posts: 17 Dedicated contributor 🌟 🐵 🌟
    Yes I would agree that the AAT has yet again changed its answers on this paper - is it me or is this all getting a little tedious. If the AAT who set the examination questions can't get their answers right how are we supposed to! I spent a whole weekend trying to make sense of this paper only to find out that the answers had changed from my print out - now they've changed them back! To add insult to injury they didn't even provide an opening stock cost so we had to assume that the prices were the same as the month we had calculated - when we all know the likelihood of this happening is extremely unlikely!

    There doesn't seem to be much parity between papers, you learn it one way with one paper only to find it answered a different way with another paper. To boot I get vague answers from college tutors!

    Is anyone else finding this problem!
  • Punky
    Punky Registered Posts: 5 Regular contributor ⭐ 😼 ⭐
    I went into yesterdays exam feeling quite confident after revising for approx 2weeks solid. The teacher assured us that it would be fine anyway nothing we havent done before (huh).
    I came out of the exam feeling absolutely sunken. The teacher wasnt around to ask any questions about it (surprise surprise) and i couldnt reconcile anything. The first question totally threw and got me all confused.
    I skipped to the next section, messed up the stock card then attempted the first section again.

    I will probably re sit but I agree, teachers need to emphasise more on each possible question which might pop its ugly head up. Or are the papers completely different now to the ones I have been revising..???!!!

  • acky2106
    acky2106 Registered Posts: 52 💫 🐯 💫
    I have to admit i have not noticed the PCR answers being changed this week but saying that they have been changed two to three times since June!?

    It looks like the current answers are showing the correct method of calculating the Operating statement:

    Mat's,Labour & overheads give you the cost of production, this total figure is divided by the amount of production, i.e 175'240/69'055, this figure is then multiplied by the number of opening and closing stocks to reach their value.
    So cost of production+ value of opening stock less value of closing stock. The overall figure is taken awayfrom turnover to give your profit.

    Think of the standard P&L and treat the cost of production as the purchases figure then add o/s less c/s gives you cost of sales.

    However saying all that, the AAT have again stated the completely wrong figures for their answers and this is what is probably throwing you?
  • Odyssey
    Odyssey Registered Posts: 6 Regular contributor ⭐ 😼 ⭐
    At least it wasn't just me who noticed the answers changed twice in the last two weeks!

    Acky2106: I manage to just about agree the AATs answers for 1.1g up until the point where they get their profit figure.
    My calculation for standard model is:
    Cost of production £175241 + opening stock £13458 - closing stock £13978
    = Cost of Sales £174721
    So profit should be Turnover £206550 - Cost of Sales £174721 = £31829. This matches with the process you said.

    But the AAT seem to have done Turnover £206550 - Cost of production £175240 + opening stock £13457 - closing stock £13978 = £30789 in one long calculation? This means they are doing the opposite with the stock to what we normally do?

    I've tried it out on a few other past papers and it seems to just be the June 07 one that is backwards. So I guess I'll just ignore their figures and hope I'm doing it the right way!!
  • acky2106
    acky2106 Registered Posts: 52 💫 🐯 💫
    No they are not, i think you may be getting confused? I can put it on a spreadsheet if it helps? OKyou have turnover of 206'550, you then have 71932+48060+55248 added together to give you 175240( this is for materials, labour and overheads respectively). The 175240 figure is your cost of production, divide this by 69'055( production) to give you a unit cost of 2.53something, you then multiply the unit cost by the number of opening stock and closing stock. So you haveyour 175240+13'457(o/s)-13978. So the overall figure is cost of production + o/s-c/s = 174'720( this is is your cost of sales. 206550(turnover) less the 174'720( cost of sales = 31'830 i have?

    As you say AAT have bodged it up no surprise...

    I don't mind sending you a spreadsheet if it helps?
  • itsmeagain
    itsmeagain Registered Posts: 3 New contributor 🐸
    acky2106 awesome thanks! i have spent an hour this evening trying to work that out
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