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q30. 1 part c
Material X purchases budget in kg
=closing inventory + Production – opening inventory
=96000/12 + 159,000 -5000
=162000Where is the closing inventory figure coming from as should it not be 159,000/12?
I am currently on vacation and so do not have the BPP Revision Kit with me.
I will be home tomorrow (Thursday) and so if you ask again tomorrow, then I will try and help you.
Thank you for waiting – I am home now 🙂
The question says that the opening inventory is 5,000 kg. (It is the closing inventory that is one months worth of production).
hi john,
But if its one month worth of production is that not 159,000 divided by 12?
As production is 159,000. so is the closing inventory wrong
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