# HELP NEEDED ASAP! Level 4 Budgeting Exam

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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

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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
• Registered Posts: 314
Hi Viki,

Hope this helps
• Registered Posts: 6 Regular contributor ⭐ ? ⭐
no its CBT 2 please help im over worked and i need it put in simple terms
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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
• Registered Posts: 6 Regular contributor ⭐ ? ⭐
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
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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
• Registered Posts: 6 Regular contributor ⭐ ? ⭐
1.3a its the materials closing inventory i need to find we where always given this in our practice assesments??
• Registered Posts: 6 Regular contributor ⭐ ? ⭐
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
• Registered Posts: 422
No worries
AAT

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

ACCA

F4 - 2015
F5 - 2015