Unit 8 and 9 chapter 1 - Osbourne Books

mariamcd020

Hello, I am doing the old style exam. I am struggling on question 1.3 a)i) absorption costing... i dont see how the book calculates for week 1... 5,000 closing stock. would appriciate any help! i am probably sounding really stupid but i dont see how.. when there is no opening stock and only 4,000 units are produced in one week xxx

my email is maria-mcdaid@hotmail.co.uk x
any help appriciated!

noodles

week 1 produced 4000 units but sold 3000 therefore 1000 units left at £5
(5000+9000+6000=20000)/4000 £5 per unit absorbion

mariamcd020

thank you!

xx

noodles

I am working my way through unit 8 and 9 too so feel free to ask questions and hopefully we can both benefit from it.