PCR advice

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
RE SECTION 1 material costs & operating statement

When asked to show an operating statement for product Exe & Wye I had no idea what to do with material costs. The question provided information about material costs so I assume these needed to be used, but how do you differentiate material costs for each product?

Should the material costs & mat. opening/closing stock figures be included in the operating statement?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR advice

    For the operating statement I just used the material cost per kg and multiplied it by the amount required for Exe and the amount required for Wye

    My operating statement looked like this

    Product

    Direct Materials
    Amount Needed x �£20

    Direct Labour
    Hours Need x �£6

    For the amount of materials and amounts I just put the totals I had calculated in previous questions without worrying about overtime premium as that is an overhead cost.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR advice

    Thanks Tiger Lily - my mind is at rest.

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