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CIMA Operational case study May 2015 - Possible scenarios

The examiner reports for the March exams have been published. My advice is to read them. There are 12 sides for 5 exams so that isn't excessive. 

Two key things to mention here:
1. Technical skills were disappointing
2. Applying P1 and F1 knowledge was weak

On that basis try to consider this possible scenario.

Jim Batton decides to open a new factory. He chooses to finance it principally through borrowing. It takes 9 months to build the factory so that it is ready to use. He starts to use the
factory two months later.
The loan he took was for 2 years. He incurred the following costs: 25 million building costs, 9 million fixtures and fittings, 1 million legal costs and the interest of 10% per year
of 20 million borrowed for 2 years.

Which costs should be included in the cost of the factory that will reported on the statement of financial position (no depreciation to be charged)?

Cannondale Bicycles Assembly Line in Bedford Pennsylvania
If the OCS examiner suggested adopting some of the mechanisation in the Batton production line are you prepared for a response?

Also Trek - carbon frame bikes

Courtesy - Astranti

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