Required: (a) If the company plans to sell 640,000 units during the year, calculate the number of units it needs to manufacture during the year. (b) Calculate how much of the raw materials should the company purchase during the year. (c) Compute the labour cost budget. Green Paste Sdn. Bhd. is in the process of preparing its annual budget. The planned level of inventory for the year are provided below: 3. Inventory Beginning Ending Finished goods (units) 80,000 10% from sales target Increase by 10% from beginning material inventory level Raw material 30,000 (grams) Each unit of finished goods requires 8 grams of raw material. The material cost is RM2 per gram. The production involves two types of labour with the following details: Type of labour Skilled Unskilled Labour hour per unit 0.2 0.5 Labour rate per hour (RM) 20
Required: (a) If the company plans to sell 640,000 units during the year, calculate the number of units it needs to manufacture during the year. (b) Calculate how much of the raw materials should the company purchase during the year. (c) Compute the labour cost budget. Green Paste Sdn. Bhd. is in the process of preparing its annual budget. The planned level of inventory for the year are provided below: 3. Inventory Beginning Ending Finished goods (units) 80,000 10% from sales target Increase by 10% from beginning material inventory level Raw material 30,000 (grams) Each unit of finished goods requires 8 grams of raw material. The material cost is RM2 per gram. The production involves two types of labour with the following details: Type of labour Skilled Unskilled Labour hour per unit 0.2 0.5 Labour rate per hour (RM) 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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