Budgeting - operating budget - closing inventiry calcs

AATchick

Hi all,

Can anyone remind me how to calculate closing inventory of finished goods for an operating budget please? Exam is on Monday and my mind has gone blank!! I'm guessing you times the number of units of closing inventory of finished goods by something but can't work out what. It says in the question that it's to be valued at the budgeted production cost per unit but again the answer isn't what I thought it would be! Any help gratefully received... Xx

AATchick

Sorry admin please delete x

melinda_m

Does it mean that you remember now? Could you tell me? Because my idea (and number) doesn't agree to the book writer's idea and it's really confusing me. :-|

AATchick

Hi Melinda, I worked it out to be the total cost of production divided by the production cost, multiplied by the closing stock amount. I hope this helps :-)