I passed, but I feel like I failed because I completely misunderstood one of the questions.
It was about a manufacturing account. I was given figures such as labour cost, cost of materials used in production for one unit, direct costs, opening/closing WIP, and opening/closing finished goods. I had to calculate the number of units produced and then work out things like cost of goods sold ect...
My problem was that in all the mock exams, books, and training-provider examples, I had never come across a question where the number of units produced was not already given. I completely froze and left it blank.
On the way home, I started thinking about it and realised it probably was not that difficult once broken down.
Am I right in thinking that if I had the total direct cost, I could subtract labour cost to find the raw material cost, then divide by the cost per unit to find the number of units produced?
I’d really appreciate it if someone could explain the correct method for this type of question.
