INFORMATION: Acsion Limited produces a single product and forecasted the following for the last three months of the year: October November 2 600 December 2 800 Sales (units) 2 200 The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. Material and labour requirements are as follows: Material 2 kg per unit Labour 3 hours per unit REQUIRED: The total material requirements for November is: O A. 2 700 kg O B. 5 200 kg O C. 2 600 kg O D. 5 400 kg

INFORMATION: Acsion Limited produces a single product and forecasted the following for the last three months of the year: October November 2 600 December 2 800 Sales (units) 2 200 The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales. Material and labour requirements are as follows: Material 2 kg per unit Labour 3 hours per unit REQUIRED: The total material requirements for November is: O A. 2 700 kg O B. 5 200 kg O C. 2 600 kg O D. 5 400 kg

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Description: INFORMATION:Acsion Limited produces a single product and forecasted the following for the last three months of the year:OctoberNovember2 600December2 800Sales (units)2 200The company's policy is to maintain closing inventory at a level of 50% of the

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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INFORMATION:
Acsion Limited produces a single product and forecasted the following for the last three months of the year:
October
November
2 600
December
2 800
Sales (units)
2 200
The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales.
Material and labour requirements are as follows:
Material
2 kg per unit
Labour
3 hours per unit
REQUIRED:
The total material requirements for November is:
O A. 2 700 kg
O B. 5 200 kg
O C. 2 600 kg
O D. 5 400 kg

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