Task 1.3 (a)- budgeting

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

Comments

  • RosieJaneRosieJane Posts: 35Registered
    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 :)
  • christinaL85christinaL85 Posts: 3Registered
    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
  • RosieJaneRosieJane Posts: 35Registered
    I have mine on the 15th :#

  • christinaL85christinaL85 Posts: 3Registered
    Good luck. Read the examiner's report and the practice assessments. The calculations are quite similar!
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