pcr december 06 1.2 b

joerd84

Hi

On the answer to this can anyone tell me where the amounts for the opening and closing stock come from? i seem to get stuck on this all the time.

Thanks

joerd84

anyone?

Big Bird

We know the sales figure is 50,000, and we are restriced to making 60,000 units of the 60000 units 1800 will be faulty goods this will leave us with finished goods surplus of 8200 to carry forward to the next period,

on period 2 we have sales of 54000 , we can produced 60.000 and again 1800 will be faulty therefore we can produce 58200 units plus the 8200 opening stock which gives us 66400 units and we are hopefully going to sell 54000 this will leave us with 12400 which would be our closing stock.

Hope I have explained this ok,

joerd84

oh right thanks i think i understand. So where did the 60000 units come from, is that 120000kgs /2?

columbia

Yes! This one threw me when I did it last night.