[sandhyabarbie6]

I will definitely watch the free lectures Sir ! Thank You very much for your Precious help ! 🙂

[sandhyabarbie6]

Heartfelt Thank You Sir ! 🙂

[sandhyabarbie6]

Good evening Sir,
Can you please help me with this question? i never came across a question where there is both kg and units,,.. but only those of units ! 🙂

A company manufactures and sells one product which requires 8 kg of raw materials in its manufacture. The budgeted data relating to the next period are as follows:
units
Sales 19,000
Opening inventory 4,000
Closing inventory 3,000

opening inventory of raw materials 50,000 kg
closing inventory of raw materials 53,000 kg

What is the budgeted raw material purchases for next period ? ______ kg : Correct answer is 147,000 kg . (taken from online mock exams)

My workings : Production budget Units kg
Sales budget 19,000 19,000
+ closing inventory 3,000 53,000
– opening inventory (4,000) (50,000)
_______ _______
Budgeted production in units/kg : 18,000 22,000
_______ _______
Do i have to use the materials purchases budget also Sir ? 🙂

Thank You 🙂

[sandhyabarbie6]

Sir,
Can i kindly request you to help me with this question? which i attempted on opentuition acca F2 mock exams. we have only answers & not workings. Please 🙂

The following budgeted information relates to a manufacturing company for next period:

Units $
Production 14,000 Fixed production costs 63,000
Sales 12,000 Fixed selling costs 12,0000

The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as $36,000.

What would be the profit for next period using marginal costing?

$ _______

> The correct answer is 27,000 $

I tried finding similar examples in kaplan book where there is only sales, cost of sales, inventory closing & opening, variable costs…
In this question its more about FIXED costs.. can u give me a brief explanation on this question please?Sir. i also tried it by contribution formula..but its sales price minus variable costs.. im really confused,please sir !
Thanks

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