PCR June 07

Options
Dee S
Dee S Registered Posts: 3 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Task 1.1 g and 1.2 (iv) OPERATING STATEMENT, AAT answer: sales minus cost of sales/production, then added opening stock and minus closing stock, to get profit
Shouldn't it be: " cost of sales/ production add opening stock less closing stock, then this answer taken away from sales? to find profit" ; REALLY CONFUSED

My answer to task 1.1 g Profit = Standard 31831, luxury 109618.
And answer to task 2.1 (iv) Profit = luxury 148032. Please help if poss.

Comments

  • Lindsey M
    Lindsey M Registered Posts: 3 New contributor 🐸
    Options
    Thats exactly the way I did it!!
    So confused!!! Which is the correct way?!
  • LJ1
    LJ1 Registered Posts: 27 Regular contributor ⭐
    Options
    I am struggling with the same thing it doesn't seem to make sense to me.

    This is what I got for profit based on the calculations provided:

    Standard

    Sales £206,550
    Less Cost of Production £175,240
    Less Opening Stock £13,457
    Add Closing Stock £13,978
    = profit of £31,831

    Luxury

    Sales £331,500
    Less Cost of production £222,852
    Less Opening Stock £16,785****
    Add Closing Stock £17,750
    = profit of £109,613


    For opening stock I personally calculated it as £16,780.

    So I am REALLY confused!
  • Lindsey M
    Lindsey M Registered Posts: 3 New contributor 🐸
    Options
    Thank you!

    At least someone is one the same wave length as me!
    Thats exactly the answers I got!
    Whats going on, are we doing it right or have the AAT once again made a mistake!!??

    So Confused, as you can bet this comes up in the exam tomorrow!
  • unknown87
    unknown87 Registered Posts: 4 New contributor 🐸
    Options
    Yes, there is a mistake made by AAT on Task 1.1g

    They have added the opening stock and minus the closing stock, but it should be the other way round.

    So the profits should be:
    - Standard: £31,831
    - Luxury: £109,613

    My teacher has confirmed this, as I was also confused.
  • LJ1
    LJ1 Registered Posts: 27 Regular contributor ⭐
    Options
    Yeah tell me about it, it does worry me!

    Fingers crossed we'll be alright so long as we show how we arrived at the answers that's half the battle.
  • just_divorced@hotmail.com
    just_divorced@hotmail.com Registered Posts: 2 New contributor 🐸
    Options
    it is worrying though if the model answers are wrong, if they can't get it right then how do we know there marking it correctly? we could lose marks for a correct answer when you think about it.
  • LJ1
    LJ1 Registered Posts: 27 Regular contributor ⭐
    Options
    Have you noticed they have changed the answers to 1.1g and not adjusted to show closing and opening stock?

    Not sure what to do in the exam now as this is contradictory to the chief assessors report which states 1.1 g 'many did not appear to know how to prepare a correct operating statement with a number not including turnover or stocks'
  • Hunnibun
    Hunnibun Registered Posts: 18 New contributor 🐸
    Options
    Have just looked!! After wasting the best part of an hour trying to work out why the answers I printed out last week didnt work!
    Not that I am any better off as they havent included the bit that was wrong - just removed it. Do you think if I do that, they'll pass me!! So bloody stupid. Thanks AAT an hour the day before exam is important to me.:thumbdown:
  • Becks2214
    Becks2214 Registered Posts: 8 New contributor 🐸
    Options
    I feel the same i have spent hours trying to get the opening/closing stock into my head on that operating statement and now the answers have been changed? Does anyone know how it should be answerd?? With opening/closing stock or leave them out?

Categories

Privacy Policy