# Practice Exam - Elements of Costing

Registered Posts: 14
I just took my first practice exam of elements of costing and failed ! Feeling crappy since I've gotten 97% and 98% on BKT and BKC so it's took a hit at my confidence a lot as feel super nervous for the real exam.

When doing the exam, I got completley stuck on this questions, like I have no idea where to start, I'm honestly sure I didn't even learn this with my provider? But I feel like I MUST have, surely!!

Can someone please talk me through it, for an ease of mind?

• MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
I'm guessing there was some text before part a that told you that you're using Average cost.
a) First handle the reciept this is simply the quantity obtained at either the cost or the cost per unit given allowing you to calculate the other.
The issue is handled differently depending on the costing method. In this case average cost has been used so you can calculate the cost per kg by taking the total 67,500 and dividing by the total kg in the pool 15000.

b) Again the information at the top or before b will have told you the other costs to make 50,000 units. Labour 42,000 and Manufacturing overheads 54,000. You might have been given the labour cost in cost per unit and need to multiply it up.

For the 40,000 you need to remember your cost behaviours. Materials and labour are variable so you take the value at 50,000 units and scale it for example materials 36000 * (40000/50000) =28800.

Manufactoring overheads are fixed so the value is the same at both 50,000 and 40,000 units.

Add them up for your total cost and divide by the total units for the cost per units.

Hope this helps.
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021

SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 22
• Registered Posts: 14
HI,

Thanks so much for replying. Apologies, I forgot to say that i knew how to do question A and got it right, it was section B that I was completely stumped on.

I've attached the photo I took of actual practice test (for marking it) and I don't think there's any mention of what the other costs to make 50,000 units would be.

I'm at work just now, so unable to properly look at your solution, but will have a crack at it after work this evening. Thanks so much for explaining, I really appreciate it. Hopefully I get it right next time!
• Registered Posts: 14
edited November 2019
Wait, ignore me. The costs for 50,000 were already there for part B so yes, they did give me the costs. Okay this makes sense now, will have a crack at your explanation after work - thanks so much!
• MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
No problem. Just remember the cost of the material used is the cost of the issued inventory 36,000 not the cost of the remaining 31,500 just noticed that in the picture above.
AAT Level 4, MAAT
ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021

SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 22