Exam paper 2004, in section 2

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
could anyone help me ?<BR>In the exam just gone, I have a doubt on how to prepare the revised operating statement after the factory A has been closed.<BR>They have given needed adjustment regarding fixed costs but no information was given to find out the cost of material and cost of labour to redo the profit and loss account for the factory B.<BR>Could anyone tell me the operating profit for revised operating statement and how to calculate that.<BR>Thank you for help in advance<BR>I appreciate that........

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Exam paper 2004, in section 2

    YOu needed to look in the extra info given. Materials was gonna have a 5% saving and not stock to he held which not entirely sure (as i was sweating buckets by then and running out of time yikes) i took off the balance sheet stock items as closing stocks as they did not need to hold any raw materials, the other figures i just took form previos p&L and added then together..........................<BR><BR>who knows fingers crossed............
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Exam paper 2004, in section 2

    The exam was ok until I got to section 2 - it was awful. The ratios were ok but don't think they gave enough information to be able to recalculate the P&L account - perhaps that's what they wanted us to say? All of the details given for the recalculation were assumptions.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Exam paper 2004, in section 2

    Hi my friend<BR>material is a variable cost. that is what i assumed when i was doing that exam yesterday. To increase the sale <BR>either you can increase the selling price or you can put up number of the production outputs. I took on the later.<BR>But I don't know how far it is right.<BR><BR>and also, how did you calculated labour capacity ratio. they did not give actual hours worked to do that.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Exam paper 2004, in section 2

    thats what messed me up, i was struggling with lab cap anyway then to learn and learn it was a/b, then couldnt find an actual?? i took the two figures given but it worked out at 160% or something, so panicked and then thought since the factory capacity was 140000hrs but budgeted was only 85000 then it wasnt working to full capacity so changed the formula around to get about 60%!!!!!!!!!!!!!!! <BR><BR>so not looking forward to thurs and fri now :-( i really HATE exams! but know needs must

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