Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

operating budget question

manbomanbo ManchesterRegistered Posts: 6
http://osbornebooks.rtahosting.co.uk/osborne69/q9s.asp

Please refer to the link above. Can anyone explain me how the closing inventory of finished good is calculated? The amount is 8400 and i do not understand why.

Thanks!


Comments

  • PeterCPeterC Registered, Tutor Posts: 196
    Total cost of production £184,800
    Production Budget 22,000 units, so £8.40 per unit (184,800/22,000)

    Closing inventory of finished goods = 1,000 units, so £8,400 (1,000 x £8.40)
  • manbomanbo ManchesterRegistered Posts: 6
    thanks!!
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