PCR Open/Closing Stock

Gemmar

I am very confused about open/closing stocks on the PCR papers. I am currently doing Dec 07 and completed up to Task 1.1 c) correctly. I don't understand why when you have worked out the total production in a) accounting for opening/closing stock you then have to account for it again when working out material purchases.

If someone can shed some light on this it would be most helpful! I am very confused!

lizrochford

Hi Gemma

In Task a you are looking at finished goods stocks for production and in task c you are looking at raw materials which is why you have to do two separate calculations on opening/closing stock.

Hope this helps.

Liz