HELP NEEDED ASAP! Level 4 Budgeting Exam

vikikellvikikell New MemberRegistered Posts: 6
When trying to complete task 1.3 in the CBT practice exams it is asking me to complete an Operating Budget however in previous tasks the closing inventory has always been given.......however as im working through i have noticed this figure is not there!!! I am stuck as i cannot work it out


Please help i have my exam on Monday morning :(:(:(:(

Comments

  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    vikikell

    I have just looked at CBT number 4
    This one says that the closing inventory is made up of 2,000 units (in the production budget)
    and that closing finished goods inventory will be valued at the production cost per unit.
    In this question the value would be 2000 x the production cost per unit

    Is this the question you found a problem with?
    Sandy
    [email protected]
    www.sandyhood.com
  • amyjayne27amyjayne27 Trusted Regular Registered Posts: 314
    Hi Viki,

    please see my answer to this post which hopefully answers your question?

    http://forums.aat.org.uk/showthread.php?35312-Budgeting-CBA-Practice-Paper-No.2-Mistakes&p=253881#post253881

    Hope this helps
  • vikikellvikikell New Member Registered Posts: 6
    no its CBT 2 please help im over worked and i need it put in simple terms :(
  • aaron0121aaron0121 Trusted Regular BirminghamRegistered Posts: 422
    Hi Vikikell,

    Firstly we know that the closing inventory will be valued at the budgeting production cost per unit so we will be
    focusing on the production aspect for this question.

    Our total cost of production is 118950 which is worked out in the operational budget, in the production budget
    our production was 39000 so to work out the production cost per unit we do 118950/39000= £3.05.
    In the production budget our closing inventory of finished goods is 4000, so we would need to
    do 4000*3.05= 12200.

    Does this help?

    Good luck for monday :)

    Aaron
    AAT

    Level 2 - 2010
    Level 3 - 2011
    Level 4 - 2013

    ACCA

    F4 - 2015
    F5 - 2015
    kirsme
  • vikikellvikikell New Member Registered Posts: 6
    sorry arron its the materials section at the very start..... i need to find the closing inventory in the answer it states it is 1200 but i really cannot work it out
  • aaron0121aaron0121 Trusted Regular BirminghamRegistered Posts: 422
    oops sorry Vikikell, are we not doing practise CBT 2 task 1.3b?
    AAT

    Level 2 - 2010
    Level 3 - 2011
    Level 4 - 2013

    ACCA

    F4 - 2015
    F5 - 2015
  • vikikellvikikell New Member Registered Posts: 6
    1.3a its the materials closing inventory i need to find we where always given this in our practice assesments??
  • vikikellvikikell New Member Registered Posts: 6
    Im sooooo thick I have just worked it out you need to find your materials used first which is 39000 production x 0.8kg 31200 then work out closing inventory Thank you everyone for your help :D:D
  • aaron0121aaron0121 Trusted Regular BirminghamRegistered Posts: 422
    No worries :)
    AAT

    Level 2 - 2010
    Level 3 - 2011
    Level 4 - 2013

    ACCA

    F4 - 2015
    F5 - 2015
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