Super Clean Limited manufactures two (2) types of cleaning detergent, Premium and Economy. The same type of liquid is used to manufacture both products. The quality depends on how much liquid is used in the production process. Super Clean Ltd owns a production plant in Johannesburg that employs 8 employees who are each paid R25 per hour. The employees work at 90% efficiency, for five (5) days a week at seven (7) hours a day. On certain occasions when orders for the cleaning detergent is high, employees may be required to work over-time, in which case they are paid 2,5 times their normal rate. The production department of Super Clean Limited supplied you with the following information: Cost of Liquid used Liquid used per bottle Labour per bottle Completed bottles on hand at the beginning of September Forecast sales for September Forecast sales for October Liquid on hand at the beginning of September REQUIRED: PREMIUM R750 per litre 6 litres 3 hours 40 bottles Q.1.2 200 bottles 140 bottles 30 litres ECONOMY R750 per litre 3 litres 2 hours 75 bottles Super Clean Limited's policy is to ensure that, at the end of the month, it has completed inventory (bottles) on hand to meet three and a half (3,5) week's sales and liquid to meet three (3) week's sales of the following month. Assume four (4) weeks in the month of September and five (5) weeks in the month of October. 150 bottles 240 bottles Prepare the liquid purchases budget in litres for the month of September.
Super Clean Limited manufactures two (2) types of cleaning detergent, Premium and Economy. The same type of liquid is used to manufacture both products. The quality depends on how much liquid is used in the production process. Super Clean Ltd owns a production plant in Johannesburg that employs 8 employees who are each paid R25 per hour. The employees work at 90% efficiency, for five (5) days a week at seven (7) hours a day. On certain occasions when orders for the cleaning detergent is high, employees may be required to work over-time, in which case they are paid 2,5 times their normal rate. The production department of Super Clean Limited supplied you with the following information: Cost of Liquid used Liquid used per bottle Labour per bottle Completed bottles on hand at the beginning of September Forecast sales for September Forecast sales for October Liquid on hand at the beginning of September REQUIRED: PREMIUM R750 per litre 6 litres 3 hours 40 bottles Q.1.2 200 bottles 140 bottles 30 litres ECONOMY R750 per litre 3 litres 2 hours 75 bottles Super Clean Limited's policy is to ensure that, at the end of the month, it has completed inventory (bottles) on hand to meet three and a half (3,5) week's sales and liquid to meet three (3) week's sales of the following month. Assume four (4) weeks in the month of September and five (5) weeks in the month of October. 150 bottles 240 bottles Prepare the liquid purchases budget in litres for the month of September.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1
Super Clean Limited manufactures two (2) types of cleaning detergent, Premium and Economy.
The same type of liquid is used to manufacture both products. The quality depends on how much
liquid is used in the production process.
Super Clean Ltd owns a production plant in Johannesburg that employs 8 employees who are each
paid R25 per hour. The employees work at 90% efficiency, for five (5) days a week at seven (7)
hours a day. On certain occasions when orders for the cleaning detergent is high, employees may
be required to work over-time, in which case they are paid 2,5 times their normal rate.
The production department of Super Clean Limited supplied you with the following information:
Cost of Liquid used
Liquid used per bottle
Labour per bottle
Completed bottles on hand at the beginning of
September
Forecast sales for September
Forecast sales for October
Liquid on hand at the beginning of September
REQUIRED:
PREMIUM
R750 per litre
6 litres
3 hours
40 bottles
Q.1.2
200 bottles
140 bottles
30 litres
ECONOMY
R750 per litre
3 litres
2 hours
75 bottles
Super Clean Limited's policy is to ensure that, at the end of the month, it has completed inventory
(bottles) on hand to meet three and a half (3,5) week's sales and liquid to meet three (3) week's
sales of the following month. Assume four (4) weeks in the month of September and five (5)
weeks in the month of October.
150 bottles
240 bottles
Prepare the liquid purchases budget in litres for the month of September.
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