Jun 06 PCR Help!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
:(
Spent too much prepping for PEV and this leaves me on a struggle with PCR.

Im looking at Jun06 paper and dont understand where the Absorption costs came from for 1.1 g.

Also is the answer in 1.1f even correct? I got 767040 where the answer paper is different. Also is there an easier way of working out task 1.2 for constraints? :x

Im dying here, im done for! PCR is 2moro!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Jun 06 PCR Help!!!

    You'll be OK!

    Task 1.1G

    The absorption rates are within the task data, copy and pasted as follows:

    "The unit full absorption cost of finished stock at the beginning of period 7 will be Sigma £45 and Theta £60."

    Task 1.1F

    Seems AAT have made a mistake totalling them figures up! It is 767040.

    Task 1.2 Constraints

    I rarely follow their standard table format to be honest. I generally do a series of my own calculations and then produce my own table. Do whatever is comfortable, but it does have to be presentable I guess.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Jun 06 PCR Help!!!

    The absorption cost of finished stock is provided under the stock information on page 2. So you just times the finished stock at the beginning of period 7 by the absorption cost quoted.

    Sigma £45.00 x 995 = £44,775
    Theta £60.00 x 1200 = £72,000

    The answers originally issued were incorrect. They have now been corrected on the website.

    1.1 f

    Materials Sigma = 438,750
    Labour Sigma = 8,190
    Overheads Sigma = 13,650

    Total Sigma = 460,590

    Materials Theta = 720,000
    Labour Theta = 17,640
    Overheads Theta = 29,400

    Total Theta = 767,040

    I think I'm going mad. Every past paper I seem to do calculates things differently.

    Do you include faulty goods in closing stock?
    Do you include wastage in closing stocks of material?
    It appears that sometimes you do and sometimes you don't.

    I've already done PEV and DFS this week and i've left the revision for PCR a bit late.



  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Jun 06 PCR Help!!!

    Wastage is accounted for at the purchasing stage.
    Faulty goods are accounted for at the production stage.

    They are never in closing stocks.





  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Jun 06 PCR Help!!!

    Thanks guys I was getting frustrated and I guess i just didnt read the question enough, lesson learnt.

    All that really bothers me most is the constraints...guess ill need to work on that.

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