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A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeted data relating to the next period are as follows: Sales (UNITS)19,000 Opening inventory of finished goods (UNITS)4,000 Closing inventory of finished goods (UNITS)3,000 Opening inventory of raw materials KG50,000 Closing inventory of raw materials KG53,000 What is the budgeted raw material purchases for next period (in kg)?
• A 141000
• B 147000
• C 157000
• D 163000Answer pls
Please don’t simply set me test questions and expect an answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will help you.
You can calculate how many units are produced (sales = opening inventory plus production less closing inventory. You know the sales and the opening and closing inventory, so you can calculate the production).
The production units multiplied by 8 tells you the number of kg used.
The number of kg used = opening inventory plus purchases less closing inventory, so you can now calculate the purchases in kg.
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