PEV, Nov04, Q 2.2

lala2009
lala2009 Registered Posts: 95 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hi

Can anyone please tell me how to work out the materials figure for the revised p/l acc?

Thank you :001_smile:

Comments

  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    oh and the direct labour and s and d costs! Really stuck on this one!! :(
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Hi Lala

    I will ry to help you now, what is the name of the company it uses?
  • joerd84
    joerd84 Registered Posts: 56 Regular contributor ⭐
    The materials one is 40% of factory A's materials costs which is 660x40% = 264, add that onto the 784 for factory B's materials which is 1048. Then take the 5% off that total for the savings which comes to 995.60.

    Direct labour is the same, 40% off factory a's labour is 176 add 448 for factory b's labour which is 624.

    Someone else will have to help with the s&d costs cos im stuck myself!
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Thank you so much Joe, think I have been revising for too long!!! :)

    Thanks Beck, it's Duo Ltd? If you know the answer the S&D costs that would be brill! :D
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Ok, it says the sales and dist costs rise in line with turnover. So I worked out S&D costs for the original factory B to be 22.46% of the original turnover. So if I do 3730 x 22.46% I get £837.76! Almost! Maybe they rounded their answer? Workings would have been helpful in the model answer!!!
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    ooooops just found the workings on the next page - my bad! :)
  • joerd84
    joerd84 Registered Posts: 56 Regular contributor ⭐
    haha, time for a nap me thinks!
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Got it!

    Sales - 2200 x 40% = 880 + 2850 = 3730

    Material - 660 x 40% + 784 = 1048 x 5% = 995.60

    Direct Labour - 440 x 40% = 176 + 448 = 624

    Fixed Production Costs - 420 + 100 = 520

    Cost of Sales therefore 2139.60

    and Gross Profit 1590.40

    Sales and distribution is 640/2850 x 3730 = 837.6 (it says its variable with turnover therefore dividing the cost by Factory Bs old sales and then multiplying this by the consolidate sales (A+B)

    Admin Costs - 250 + 60 = 310.00 (the £60 is suggested in the note from factory manager B)

    Don't forge to read everything guys :001_smile:

    hope I helped
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Nice one Beckstar!! :) Are you taking the exam on Monday?:)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Yes PEV on Monday
    BTC on Tuesday
    and PTC on Friday

    Just want to do them now and get them out the way!!!

    What about yourself?
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Definitely need a nap now! Think maybe it's time to call it a day - I have been revising since 10am............ :)
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    I know what you mean Beck. Same exams as you except DFS on Wed. :)

    All the best with the exams! :D
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    You too, if you need any help I'll try and help you.

    Makes revising for these exams,.. lets say better :)
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Thank you - that would be great! :D Likewise, if you're stuck with anything I will do my best to help :) not long to go now....:)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Well I'll be on here all tonight and tommorrow so give me a shout if you need my assitance, it would be a pleasure :)
  • lala2009
    lala2009 Registered Posts: 95 Regular contributor ⭐
    Aww you're a star! I'm gonna sign off in a bit as it has been a long day, but I'll be back on 1st thing tomorrow so be prepared hehehe :) bye for now :)
  • 111beckstar111
    111beckstar111 Registered Posts: 158 Dedicated contributor 🦉
    Okay, no probs see you tommorrow :thumbup1:

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