Pcr - dec 2006

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pink
pink Registered Posts: 35 Regular contributor ⭐
Hi

Can any one help me with this past paper

on Task 1.2 in the answers, I cant see where they get the new Closing stock from of 8,200 units for Q1??

Just getting in some last minute practice!!

Thanks..

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  • Mhmoud Thafer
    Mhmoud Thafer Registered Posts: 2 New contributor 🐸
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    Hi Pink

    total amount of material available is £120 000 kgs

    you can produce 60,000 unit as a Gross production
    you have to workout the wastage of material in units which is 60,000 units x 3% =1800 units wastage
    so to find the net production Budget that 60,000 units - 1800 units wastage = 58200 units as net production
    you have to work it out backward
    so the planned production is 58200 units takeaway the sales 50,000 units that gives you 8200 as a closing stock that is the balancing figure.

    see the next period 2
    planned production - sales + opening stock
    = Closing stock (( BALANCING FIGURE))

    58200 - 54000 + 8200 = 12400 UNITS CLOSING STOCK

    I wish the info will help you.
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