HELP NEEDED ASAP! Level 4 Budgeting Exam

vikikell

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 :(:(:(

SandyHood

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?

amyjayne27

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

vikikell

no its CBT 2 please help im over worked and i need it put in simple terms

aaron0121

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

vikikell

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

aaron0121

oops sorry Vikikell, are we not doing practise CBT 2 task 1.3b?

vikikell

1.3a its the materials closing inventory i need to find we where always given this in our practice assesments??

vikikell

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

aaron0121

No worries