AAT Mock 1 Task 1.3

absco14absco14 Registered Posts: 34
Could anyone help with where the numbers come from for the opening and closing inventory?


Comments

  • Ekaterina_SEkaterina_S Registered Posts: 12
    Hi

    I was explaining similar question in post named 'Practice exam Osbourne Book task 4'.

  • Ekaterina_SEkaterina_S Registered Posts: 12
    Opening inventoty for month 2 would be the same as closing inventory for month 1. To find out closing inventory for month 1( in units) : Opening inventory + Production- Sales. In this case it is 0+10000-8000= 2000 units. So, opening inventory for month 2 will be 2000 units.
    Closing inventory for month 2: 2000+10000-9000=3000 units. And this figure is opening inventory for month 3.

    Then you need to calculate production absorption and marginal cost per unit and multiple it by opening inventory number of units.

    I hope that helps.
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