PCR - June 05, help please!!

nikkym
nikkym Registered Posts: 11 New contributor 🐸
:huh: Please can someone explain why the budgeting operating statement in task 1.1 is set out differently????

CONFUSED - PLEASE HELP!!!

Comments

  • Lindsey M
    Lindsey M Registered Posts: 3 New contributor 🐸
    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
    Bex Registered Posts: 33 Regular contributor ⭐
    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
    Bex Registered Posts: 33 Regular contributor ⭐
    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
    nikkym Registered Posts: 11 New contributor 🐸
    Thanks!

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

    ...almost over now!!!

    Good luck
    x
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