help re june 2007 pcr

blades

Can someone please help me have completed section 1 task 1.1 of june 2007 pcr all is fine until i come to the budgeted operating statement. Iorrect until i get down to opening and closing stock to get my figure I divided production costs with the units sold and muliplied the opening and closing stock by this. I must be going wrong somewhere as my fiqures are different.

I cannot seem to see where I am going wrong, i know it will be something simple.

SandyHood

I think if you scroll through other threads this issue has been discussed before.
My answer includes an assumption

The opening stock in units is given, but the value is not given. In the absence of any data I valued the opening stock using the cost per unit for August. Not ideal but there isn't much alternative.

My values were

Model....................................... Standard ...................................... Luxury............................................Total

opening stock................... 5303 units £13,457............................. 2507 units £16,779 ............................. £30,236

Your question was

I get down to opening and closing stock to get my figure I divided production costs with the units sold and muliplied the opening and closing stock by this. I must be going wrong somewhere as my fiqures are different.

Try dividing production cost by the units produced not units sold.

blades

Thank you Sandy I see now where I was going wrong. Saturday Night and doing revision very sad I think.

SandyHood

Sometimes Saturday night is the only night when there is time for revision.
Roll on the Saturday after the exams!!

Barbara Knight

Hi all,

From looking at the answers above, does this mean that the answer in the actual model answers book is incorrect for opening stock of the luxury product? Please say yes as I have been looking at this for quite a while and I have got everything correct apart from that! They show the same opening stock figure for the oringal statement and the reworked one and I don't get their answer but I do get the one that Sandy has posted above. I will be so relieved if its not me I am losing confidence in my ability to understand as I thought that I had operating statements sorted!!

B:thumbup1:

SandyHood

Yes there are quite a few errors

The examiner will also have many answers and can only put one set, so his answers can be confusing and can lead you to think you have got something wrong which would have actually got very many or even full marks.