# PCR June 07

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Registered Posts: 3 New contributor 🐸
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.

• Registered Posts: 3 New contributor 🐸
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Thats exactly the way I did it!!
So confused!!! Which is the correct way?!
• Registered Posts: 27 Regular contributor ⭐
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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
= profit of £31,831

Luxury

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

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

So I am REALLY confused!
• Registered Posts: 3 New contributor 🐸
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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!
• Registered Posts: 4 New contributor 🐸
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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.
• Registered Posts: 27 Regular contributor ⭐
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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.
• Registered Posts: 2 New contributor 🐸
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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.
• Registered Posts: 27 Regular contributor ⭐
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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'
• Registered Posts: 18 New contributor 🐸
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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:
• Registered Posts: 8 New contributor 🐸
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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?