Draw up a material purchase budget from the following information: Use the given format. Estimated sales of a product is 50,000 units. Two kinds of raw materials A and B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4 units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000 units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year: finished product, 8,000 units; A, 10,000 units; B 12,000 units. Material Purchase Budget for the Year Material A Units Particulars Material B Units Material Required to meet Production Target Material A-33,000 x 3 Material B- 33,000 x 4 Add : Desired closing stock at the end of next year Totals Less : Expected stock at the commencement of next year (opening balance) Quantity of Materials to be purchased

Draw up a material purchase budget from the following information: Use the given format. Estimated sales of a product is 50,000 units. Two kinds of raw materials A and B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4 units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000 units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year: finished product, 8,000 units; A, 10,000 units; B 12,000 units. Material Purchase Budget for the Year Material A Units Particulars Material B Units Material Required to meet Production Target Material A-33,000 x 3 Material B- 33,000 x 4 Add : Desired closing stock at the end of next year Totals Less : Expected stock at the commencement of next year (opening balance) Quantity of Materials to be purchased

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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