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Registered Posts: 26
Hi,

I’m struggling to get to the answer on practice assessment 1, task 3 for budgeting. Can someone please explain how they get the answer for the production @1.45 per kg?

• Registered Posts: 262
edited November 2018
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348000x0.7kg=243600kg used in production
243000+7400 closing inventory =251000 kg sub total
251000-8800 opening inventory =242200 purchase @ 1.45=£351190
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 26
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Thank you. Are you able to help me on task 3 b) how to work out the closing inventory of finished goods figure to get to £95,760?
• Registered Posts: 262
edited November 2018
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Closing inventory of finished goods is multiplied by the production cost per unit
Closing inventory you take from the scenario, production cos per unit you get when you devide the total production cost to the number of production units
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 26
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I must be using the wrong figures because it isn’t coming to that total? Thank you for your help x
• Registered Posts: 26
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Don’t worry I’ve done it xx
• Registered Posts: 4
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I saw this and thought it might be useful for anybody else to see the figures used:

Production cost: £974,400
Total number of production units: 348,000
974,400 / 348,000 = £2.80

Closing inventory given in the Scenario of: 34,200 x £2.80
= 95,760