Task 1.3 (a)- budgeting

christinaL85

Hi, my mind is gone completely blank. On part 1.3 a of Assessment one on the AAT website it is a calculation on Material Schedules. I can work out the kg of Units used in production but I can figure out how to value these units. Can someone please let me know how this is calculated.

Thanks

RosieJane

In the instructions it states 'Closing inventory will be valued at the budgeted purchase price'

You work out the KG used in production (ie. 589000 x 0.75kg)

Then minus this from the Subtotal KG to get your closing inventory in KG

Work out the purchase price from 'purchases' (ie. £598000/460000units)

Multiply the closing inventory KG by the purchase price to get the £ value

Subtract closing inventory £ from Subtotal £ to get your value for production.

Hope this helps

christinaL85

Thanks Rosie.

I worked it out eventually. I did my budgeting exam last week. I think it went well apart from Question 8 where I waffled alot! Fingers crossed I passed.


Financial Performance next

RosieJane

I have mine on the 15th

christinaL85

Good luck. Read the examiner's report and the practice assessments. The calculations are quite similar!