budgeting practice exam 2

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zhulme
zhulme Registered Posts: 52 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hello, im having problems with Task 1.3 on the AAT online practice simulation. I can complete all of the table up until working out - the closing stock of finished goods £12200 and cost of goods sold £113750. does anyone know how to work this out??

Thanks

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  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    Materials £77,800
    Labour £34075
    Overhead £7075
    Cost of Production = £118,950 / 39,000 units Production * Closing stock of finished goods 4,000 = £12,200 Closing stock of finished goods.

    Cost of goods sold
    Opening stock £7,000
    + Production £118,950
    - closing Stock (£12,200)
    Cost of goods £113,750

    Hope this helps if not inbox me.
    babs
  • zhulme
    zhulme Registered Posts: 52 Regular contributor ⭐
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    hey

    Great thats fantastic thank also actually i'm having problems working this one out too....

    Its working out the flexed budget but im only stuck on the (semi variable energy with the variable energy being £2 per unit.

    Budgeted energy 151000 Actual 164000(Flexed volume is also 68000)
    Budgeted Units 63000 Actual Units 68000

    I have no idea where to start with this one!
  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    Hi,
    variable element fixed element
    £151,000 - (63000 units x £2.00 = £126,000) = £25,000
    68000 units x £2.00 = £136,000 variable + £25,000 fixed = £161,000 which gives an adverse variance of £3,000.

    Hope this helps.
    babs
  • zhulme
    zhulme Registered Posts: 52 Regular contributor ⭐
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    hi

    Great fantastic thanks for that, youve been a great help :)
  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    good luck with your exam. :)
  • nonmugglesue
    nonmugglesue Registered Posts: 39 Regular contributor ⭐
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    You are not alone, those got to me too, good luck :)
  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    This was my favourite exam. Sad I know,
    FNST the CBA didn't work properly but we wrote the answers on paper and I passed.
    FP I had a tree hit me on the head 2 days before the exam and I had concussion, but I passed.
    So I have to say that budgeting was my favourite. I passed.
  • zhulme
    zhulme Registered Posts: 52 Regular contributor ⭐
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    hey

    It's definately not sad! it's one of my favourite i'd say it's the easiest one and most is just general maths and common sense really. I feel confident enough now anyway so i should be ok. only 4 units left yay! hoping to finish them by April next year it will be a push but if i get my finger out i can do it, and its when my contract for work ends so it would be a perfect deadline!
  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    good luck, it'll be worth it.

    Babs
  • zhulme
    zhulme Registered Posts: 52 Regular contributor ⭐
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    yay!

    Had the exam yesterday, it couldnt have gone better, probably the best unit of the whole AAT! :)
  • babsa
    babsa Registered Posts: 115 Dedicated contributor 🦉
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    Fantastic news, let me know your results. x

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