PCR - June 05, help please!!

nikkym

:huh: Please can someone explain why the budgeting operating statement in task 1.1 is set out differently????

CONFUSED - PLEASE HELP!!!

Lindsey M

Help!!

Nicky! I thought that June 05 was the way to do it!
If you look at the blog for june 07 others think thats the way to do it too!!
SO SO SO CONFUSED.

I thought that you have you sales.
Then to get COS
have your opening stock
Add the cost of production
Less the closing stock

Then Sales less COS equals profit! Is this not the way you would do it?

If anyone else can help please do, its desperate times!!:001_smile:

Bex

Other people have been posting:

Turnover
less cost of production
less opening stock
add closing stock
equals profit

I thought that this was the way to do it??

xx

Bex

This is what a member posted on the June 07 exam, so surely the operating statement (layout wise, not figure wise) should be the same for the 05 paper:


I am struggling with the same thing it doesn't seem to make sense to me.

This is what I got for profit based on the calculations provided:

Standard

Sales £206,550
Less Cost of Production £175,240
Less Opening Stock £13,457
Add Closing Stock £13,978
= profit of £31,831

Luxury

Sales £331,500
Less Cost of production £222,852
Less Opening Stock £16,785****
Add Closing Stock £17,750
= profit of £109,613


For opening stock I personally calculated it as £16,780.

So I am REALLY confused!

nikkym

Thanks!

PCR has really caused some problems over the last few days....

...almost over now!!!

Good luck
x