Budgeting Level 4 Practice Assessment 1, Task 3(b)

dalmatian
dalmatian Registered Posts: 37 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
I'm stuck at this point of the Operating Budget:
Closing inventory of finished goods (In the assessment performance feedback it says that this is valued at budgeted production cost per unit) but how do I find this value??? The answer is 8825 but I cannot work out how it is calculated, can anybody help?

Comments

  • dalmatian
    dalmatian Registered Posts: 37 New contributor 🐸
    Sorry this is from the Osbourne Book "Preparing and Using Budgets"
  • BlueJeans
    BlueJeans Registered Posts: 56
    Hi d.

    1000 from closing inventory of finished goods * 8.825 =8825

    8.825 will come from total of raw materials+direct Labour+production overheads divide 28000 which is production....
    So...140000+51100+56000=247100/28000=8.825*1000=8825

    Hope this helps :)
    Believe you can and you're halfway there...
  • dalmatian
    dalmatian Registered Posts: 37 New contributor 🐸
    Yes, it does. Many thanks! :)

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