Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Budgeting
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Need help with production budget question

SadzSadz East MidlandsRegistered Posts: 5
Can anyone help explain how the production budget (units) figure was calculated?
The only part I dont get of the answer is how the production budget was calculated with just the sales and closing inventory.

Textbook answer:

Best Answer


  • SadzSadz East MidlandsRegistered Posts: 5
    Thank you for your help, that explains it perfectly. I just didnt consider that the 20% would also apply to the previous period.
  • Pian32Pian32 Registered Posts: 247
    Yeah the best thing to remember for these questions is that unless stated otherwise all budget assumptions have been met.

    I've seen some questions state for instance that there is a certain opening inventory that doesn't match the budget rule.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Planned for Dec 2020
    F6- Passed Sep 2020
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