MAC dec 07

lgarside

Hello is someone able to show me how to calculate the below. I understand how to do it if 5 days sales. I know the question was worded wrong but I would just like to know how the answer was arrived at.

"The policy is to keep sufficient closing stock to meet 5 days production in the following month".

Barbara Knight

HI
the exam answers, published under past papers on this site shows the workings
Barbara:thumbup1:

lgarside

Thanks I couldn't see the workings, just the answers!! Do you know how they worked it out??

SandyHood

here's my answer
http://www.aat.org.uk/forums/showthread.php?p=106016&highlight=ybox#post106016

SandyHood

I've looked at the examiner's answer too and we have very different answers.

On higher level exams assumption is common where the candidate has to make their own mind up about what to do when the instructions are not clear.

This is an example of something similar. I happen to think my answer is better as it uses the fact that stock levels at the end of Dec are planned to be 0.

I hope you find the narrative on mine helps you to follow the process.

I do not expect a similar question this June (or ever)

lgarside

Thanks Sandy that helps a lot. Not taught any of this in my classes!!!!!!!!

Would help when you come to revise if the examiners answers were correct!!!!

many thanks again

SandyHood

Igarside

There are a number of exams where you can have a different correct answer.
Remember only one answer is published but many more are accepted as correct by the markers.

The problem with this exam lay in the question paper more so than the model answer.

lgarside

HI Sandy I was wondering if you could explain how you know it's 80% I understand why it is but I can't work out how you know from the info given that it;s 80%?

Many thanks

SandyHood

1. We know that Sales in December will be 160,000 (Ybox) and 400,000 (Siny)
2. We also know that the opening stock at the beginning of December will be 5/20 days production during December.
3. And the closing stock of each product will be zero at the end of December
4. so as 5/20 days of production for December is in the opening stock, and December has 20 days of production
5. then the total amount available for sale is 5 days (op stock) + 20 days (in December) = 25 days
6. We also know that this is = December sales as the closing stock is zero
7. This means that of the December sales 5/25ths will have been opening stock products (20%) and 20/25ths will have been made in December (80%)
   

Can you see why I think its not likely to be examined again? !!