PCR June 07

Dee S

Task 1.1 g and 1.2 (iv) OPERATING STATEMENT, AAT answer: sales minus cost of sales/production, then added opening stock and minus closing stock, to get profit
Shouldn't it be: " cost of sales/ production add opening stock less closing stock, then this answer taken away from sales? to find profit" ; REALLY CONFUSED

My answer to task 1.1 g Profit = Standard 31831, luxury 109618.
And answer to task 2.1 (iv) Profit = luxury 148032. Please help if poss.

Lindsey M

Thats exactly the way I did it!!
So confused!!! Which is the correct way?!

LJ1

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!

Lindsey M

Thank you!

At least someone is one the same wave length as me!
Thats exactly the answers I got!
Whats going on, are we doing it right or have the AAT once again made a mistake!!??

So Confused, as you can bet this comes up in the exam tomorrow!

unknown87

Yes, there is a mistake made by AAT on Task 1.1g

They have added the opening stock and minus the closing stock, but it should be the other way round.

So the profits should be:
- Standard: £31,831
- Luxury: £109,613

My teacher has confirmed this, as I was also confused.

LJ1

Yeah tell me about it, it does worry me!

Fingers crossed we'll be alright so long as we show how we arrived at the answers that's half the battle.

just_divorced@hotmail.com

it is worrying though if the model answers are wrong, if they can't get it right then how do we know there marking it correctly? we could lose marks for a correct answer when you think about it.

LJ1

Have you noticed they have changed the answers to 1.1g and not adjusted to show closing and opening stock?

Not sure what to do in the exam now as this is contradictory to the chief assessors report which states 1.1 g 'many did not appear to know how to prepare a correct operating statement with a number not including turnover or stocks'

Hunnibun

Have just looked!! After wasting the best part of an hour trying to work out why the answers I printed out last week didnt work!
Not that I am any better off as they havent included the bit that was wrong - just removed it. Do you think if I do that, they'll pass me!! So bloody stupid. Thanks AAT an hour the day before exam is important to me.:thumbdown:

Becks2214

I feel the same i have spent hours trying to get the opening/closing stock into my head on that operating statement and now the answers have been changed? Does anyone know how it should be answerd?? With opening/closing stock or leave them out?