Absorption & Marginal costing

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Hello,<BR><BR>I'm working through the Unit 9 Specimen paper and finding it fairly tough going!!<BR><BR>I don't have a clue how to answer 1.1b Materials budget. I know how to produce it, however I cannot follow the data given for materials. I don't want to look at the the answers until I have some glue or if somebody could give me a glue?<BR><BR>Thank you in advance.<BR><BR>Brian

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Absorption & Marginal costing

    Brian,<BR><BR>If this is the specimen paper in the BPP textbook about production of Delta's then you will already have calculated the amount of production. Mulitply these figures by 6 to calculate how much material you need. You can then work out if this is over the maximum purchases you are allowed from the supplier. If some periods require more than the maximum then the question states that you can purchase in an earlier period so you just make adjustment to the earlier periods - therefore increasing their purchases. <BR><BR>Hope this helps!<BR><BR>Kelly

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