Budgeted Operating Statement

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
I'm hoping someone might be able to help explain something I am confused with on the budgeted operating statement. There is a differene on the layout between the June 2005 and Dec 2005 papers.

December 2005 includes closing stock
June 2005 doesn't include them

Any help would be appreciated.
Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Budgeted Operating Statement

    I think you will find that this is because the question states there is no stocks of raw material or work in progress at any time.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Budgeted Operating Statement

    Both papers state that there are no stocks in progress.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Budgeted Operating Statement

    They don't seem to reflect anything for closing stock in the December paper within the answers so I wouldn't worry too much.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Budgeted Operating Statement

    From memory, the Dec paper had a difference in the production figure and the sales figure leaving a closing stock. Didn't the June paper just have a sales figure meaning there was no stock unsold????

    Good luck for exam!!!

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