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Q. J co makes a component M which uses 3kg of raw material of X.The opening inventory at start of next year is expected is as follows:
Opening inventory of raw material X 5000kg@$4
Opening inventory of componenet M 3000unitsBudgeted sales of component M are expected to be 48000 units (occuring evenly throughout the year).
Closing inventory at the end of the year is as follows:
Closing inventory of material X: One month’s worth of production
Closing inventory of component M: Two month’s worth of salesWhat is the material X purchases budget in $?
Please do not simply set test questions and expect an answer.
You must have an answer in the same book in which you found the question, and so you should ask about which bit of the answer you are not clear on. Then I will try and help.
Yeah.I have the answer.but i don’t understand that.Answer was like that:(96000/12)+159000-5000=162000kg….How $96000 came?
I think you may have found this question in a previous version of the BPP Revision Kit. It is wrong – they have made a mistake (and have removed the question from the current edition).
In future, you must ask in the Ask the Tutor Forum is you want for me to help – this forum is for students to help each other.
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