PCR some answers to check !!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi Everyone<BR><BR>Just came out from the PCR exam, like to know if my answers were right?<BR>Probably I was freaked out during in the exam? <BR>Task 1.1 (h) £ 74 and £120<BR> (g) £ 36000 and £ 67000<BR>But in Section 1 <BR>the Opening Finished stock £16000 and £96250 keep me nagging ,what to do with these? Any idea?<BR><BR>Task2.2 ( e) Flexible Budget £ 1000 Variance 290(F)<BR>Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I got same unit rates but different operating profit - 52 and 50 i think? however i did nothing with closing stock .<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    oh and yes flex budget variance same as yours!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I agree too but my operating profit was 50K and 52K, same as Sera21uk.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I got 50k and 52k. I also got the £74 and £120 you mentioned.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    how did u get that i am lost i fail
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I am bit confused now. I got £72 for Aston and £120 for Brum. Can anyone please tell how they got £74.<BR><BR>thanks<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I also got 74 and 120<BR><BR>the 74 /72 difference might have something to do with the 4% evaporation???<BR><BR>Got Operating Profit to be 48800 and 53750<BR><BR>I calculated the closing stock:<BR>opening stock / by no. units of opening stock x no. units of closing stock<BR><BR>Think it might have been more complicated than this because of FIFO<BR>anyone have any ideas?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    the question mentioned that evaporation was b4 production so i didnt take it in the cost of production and deducted it separately in the operating statement ie after cost of production. i actually calculated the cost of production and closing stock at the same value which i thought was ( for Aston: 6ltrs*£8+2hrs*£8+2hrs*4) which comes up to 72. as i understand we can include wastage cost in the total unit cost if it has occured during production. any suggestions?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    I think you need to add the 4% to the amount of material required. (to make sure you've got enough of the liquid to meet the sales demand)<BR>This will increase the cost of the material adding to the total cost of the production budget and in turn increasing the unit cost.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PCR some answers to check !!!!

    wouldnt 500 ltrs come in the purchase budget along with 12000 litres (total 12500) which will be used for production. i looked at most of sums and the wastage point refers to have occurred after production hence taken along in cost of production but i assumed that here this has happened b4 prod so obviously the mgmt ac knows that extra 500 will have to be purchased. which means that 12500 bought out of which only 12000 will go into actual production. and as per the cost of production formula it is the material usage that comes in not material purchase. maybe i m wrong here!! not sure.

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