Operating Budgets Flashcards Preview

AAT Budgeting L4 AQ2016 > Operating Budgets > Flashcards

Flashcards in Operating Budgets Deck (4)
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1

Closing inventory formula

Total cost of production / production units X Closing inventory of finished goods

2

Cost of goods sold formula

Opening inventory
+ total cost of production
- closing inventory

3

Materials payable (extended q - cash flow)

Purchase £ NOT used in production £

4

First and alternative scenarios -
Energy is £123600 first scenario
A previous allowance of 3% price increase
Energy price decreases by 1% in alternative scenario

What’s the calculation and answer?

123600 / 103% X 100 = £120000 (price before the 3% price increase)

£120000 X 99% / 100 = £118800