Index factor, Index Total , Please HELP

Options
elenmarkova
elenmarkova Registered Posts: 17 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Can somebody please tell me how you work out the INDEX Factor and Index Totals, I am struggling with this calculation for a while and my head is really messed up.

These are the sales made during 2003 and alongside are the index values, I need to calculate the indexed value of the monthly sales in December 2003 terms.

Month2003 Unadjusted totals Cumulative totals Industrial index

January 295 295 111
February 311 606 115
March 350 956 119
April 342 1,298 121
............
November 459 4,023 147
December 440 4,463 151

And two additional columns for Index Factor to be calculated and Index Totals

I will really appreciate any help

Thanks

Comments

  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
    Options
    Hello,

    To restate figures in Dec 2003 terms this must mean the index figure for Dec will be 1.00.
    Therefore, for Jan you would use 151/111 = 1.36 index factor, to adjust Jan figures 295 * 1.36 = 401. The sales figure for Jan 03 has now been restated in terms for Dec 03.
  • elenmarkova
    elenmarkova Registered Posts: 17 Dedicated contributor 🦉
    Options
    index

    thanks for the reply

    following you , that means the index factor for February in terms of December 2003 would be
    151/115 = 1.31 , and the index total will be 1,31*311 = 408

    Am I right

    It seems pretty simple ...
  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
    Options
    Yes, that looks right to me. Obviously as you get to Dec 03 the factor will be 151/151 = 1.00.
  • elenmarkova
    elenmarkova Registered Posts: 17 Dedicated contributor 🦉
    Options
    thanks

    great , thanks a lot crispy

Categories

Privacy Policy