PCR Dec 08 Task 1.2

jow774

Can someone explain why they work out the cost of materials (c) based on the saleable production units and not the total units assembled (d)? Surely to produce the extra 15% over and above sales you need extra materials? Or am I being thick?

Please help.

Thanks in advance.

rachelrunshaw

jow774 wrote: »

Can someone explain why they work out the cost of materials (c) based on the saleable production units and not the total units assembled (d)? Surely to produce the extra 15% over and above sales you need extra materials? Or am I being thick?

Please help.

Thanks in advance.

Hi
Just doing that paper myself. To get the average material cost you need to divide your material cost £1,650,600 by the number of pipstrelles produced. This answer was asked for at (b). 382,000 units sold add 15,000 units closing stock less 4,000 units opening stock. Therefore 393,000 units were produced, £1,650,600/393,000 = £4.20

rachelrunshaw

rachelrunshaw wrote: »

Hi
Just doing that paper myself. To get the average material cost you need to divide your material cost £1,650,600 by the number of pipstrelles produced. This answer was asked for at (b). 382,000 units sold add 15,000 units closing stock less 4,000 units opening stock. Therefore 393,000 units were produced, £1,650,600/393,000 = £4.20

Sorry, just realised I am being a bit thick in answering 1.1

jow774

No worries, thanks though. Ive got it I think, is it because the faulty ones are un-assembled to be remade? Im sooo confused with flippin pcr.