Budgeting Practice Assessment 1
AATnovice
Registered Posts: 46 Epic contributor 🐘
hey
Sorry I cannot get my head around how they have the (Closing inventory of finished goods) figure.
the question is tast 1.3 the operating budget..
please help :001_smile:
Sorry I cannot get my head around how they have the (Closing inventory of finished goods) figure.
the question is tast 1.3 the operating budget..
please help :001_smile:
0
Comments
-
Do you mean the £5000 figure in the first table, or do you have to calculate something further down?
If it's the £5000 in the first table, it's just the total of the opening inventory, plus the production total (4,000 and 30,000) minus the sales (29,000) leaving you with £5000 left in the closing inventory.0 -
Ah, I can see you have to calculate a closing inventory price further down which I now assume is the one you are asking about (sorry!)
The total costs of production are £60,000 (27200+26400+6400). You know this produced 30,000 items and that 5000 of them are in the closing inventory. Therefore 60000/30000 x 5000 = £100000 -
you are a star *******
Thank you0
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