Valuation of stocks in PCR 1.1

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
Hello Folks,<BR><BR>What did you think of PCR? Much, MUCH nicer than PEV, eh? It appears to me that the examiner spent so much time writing that beast of a PEV paper that he didn't have time to write a PEV one at all and just recycled old papers! Hooray for us though! <BR><BR>I came away from the exam pretty happy today, but I was a little unsure about what I was supposed to do with the valuation of the stocks. In the end, I totally ignored them! Not sure that was the best option, but I didn't want to do the wrong thing and everything else seemed nice and straightforward. <BR><BR>What did everyone else do?<BR><BR>Thanks,<BR><BR>Angelic

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    Well I used the Valuation of the Stocks in my Budget Statement at the end, I had an Opening and Closing Stock, not sure whether that was correct, but I like you thought it may be a red herring, and I was half way through the Budget Statement, and thought.............hey, remember seeing some valuation of Stocks, so I put it in.<BR><BR>But I agree, it was a really, really, nice Exam today.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    Yes I included them too, since it was a budget based on absorption costs and they mentioned the opening stock valuation, the value of opening stock worked out to £80 and £110 (I think) so I decided to include them.<BR><BR>Best of luck everybody!<BR><BR>David
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    Did you do them as 2 seperate Budget Statements 1 for Aston & 1 for Brum as I did, or did you all do it as 1 Budget Statement for both of them?<BR><BR>And I am a little miffed, just read on another post, that you are allowed to bring out with you the Question paper, I would have definately bought that out with me If I had known that!!! grrrrrrrrrrrrrrrrr.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    I did it as one statement, but had seperate columns for each product. <BR><BR>I didn't put opening or closing stock in it though! Oops.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    I included the opening stocks of both products in the preparation of the operating profit ( using the value given ....the FIFO) and use the absorption unit cost of £74 - aston and £120- Brums for computing the closing stocks of each product. <BR><BR>I did one budget statement but has two columns ...one for aston and one for brums...<BR><BR>JP
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Valuation of stocks in PCR 1.1

    my query was whether these two separate columns should have been added together to get a total from which the overhead premium could be deducted as finishing the statement after closing stock is strictly gross profit rather than operating. But the wording was bad on this one in terms of how far to take it.<BR><BR>But nothing can do about it now.

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