PCR - Dec 03 Past Paper Query on Task 1.1b

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
Hope someone can help me on this one. Why is it when you are calculating the wastage of 2% that you don't include the opening and closing stock of materials in the calculation?

I have complete brain block at the moment and can't think why you wouldn't include the opening and closing stock as well. If this is all going to be issued to production and 2% of all material issued to production is lost through wastage surely you would have to include the material in stock as well?

Any help would be much appreciated.

Thanks.

Susan

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - Dec 03 Past Paper Query on Task 1.1b

    Hi Susan.

    It is the production process that causes the 2% wastage, therefore you only apply the 2% to that stock which is actually being processed.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - Dec 03 Past Paper Query on Task 1.1b

    Duplicate.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - Dec 03 Past Paper Query on Task 1.1b

    Thanks for that - much appreciated.

    Susan
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR - Dec 03 Past Paper Query on Task 1.1b

    Thanks for that - much appreciated.

    Susan
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR - Dec 03 Past Paper Query on Task 1.1b
    burnawn wrote:
    Hope someone can help me on this one. Why is it when you are calculating the wastage of 2% that you don't include the opening and closing stock of materials in the calculation?

    I have complete brain block at the moment and can't think why you wouldn't include the opening and closing stock as well. If this is all going to be issued to production and 2% of all material issued to production is lost through wastage surely you would have to include the material in stock as well?

    Any help would be much

    Thanks.

    Susan

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