PCR - Old paper from Dec 2006

confoosed

I've got my PCR exam on the 5th December and I'm panicing because I'm going through old exam papers and on Task 1.2 on the December 2006 exam I have absolutely no idea of the answer. I assume it's a limiting factor whereby you work out the contribution etc, but in this case there's only one product being produced so I'm completely stuck. I don't even know where to start. Help............!!!

definite.studies

Hi, I haven't looked at the answer yet but I think it is one of those questions where the budgeted purchase quantity is greater in some periods than the quantity available to buy.

This means you have to purchase the material earlier than originally planned and either stockpile it or bring forward the production operations and stockpile the finished product.

Rexie

Dec 2006 Paper

Task 1.2 B - these confused the whole of our class.

You have to answer it backwards

Limiting factor is materials 120,000kg so

you can make 60,0000 units
less 3% material waste (1800 units)
available units = 60000 - 1800 = 58200

closing stock for period 1 will now be available units less sales forecast

58200 available - 50000 sales = 8200

these 8200 will then be the opening stock for period 2

period 2 will be 58200 - 54000 (sales) plus opening stock = 12400 (this is now the opening stock period 3.

hope that helps

:confused1:

confoosed

I GET IT!!! WOOO HOOOO
Thanks Rexie, you are truly wonderful )

confoosed

that was supposed to be a smiley face, not sure what that one means!!