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HL Accounting Question

Osmosis Jones · 2014-05-25 15:22:35

Been going over production budgets and I'm very confused as to why, in the Production Cost/Manufacturing Budget, the opening and closing stocks of raw materials are written in as the names of the products rather than the names of the materials. For example in the 2011 paper, the opening stock of raw materials is written…

25-05-2014 3:22pm

#1

Osmosis Jones

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Join Date: April 2011

Posts: 20058

Been going over production budgets and I'm very confused as to why, in the Production Cost/Manufacturing Budget, the opening and closing stocks of raw materials are written in as the names of the products rather than the names of the materials. For example in the 2011 paper, the opening stock of raw materials is written down as that of Light and Extra Light whereas to me it only makes sense for it to be written down as Material A and Material B. Could someone explain this to me? Am I even making sense here?:p

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