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budget preparation

Forums › ACCA Forums › ACCA MA Management Accounting Forums › budget preparation

  • This topic has 4 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • September 29, 2014 at 2:06 pm #202154
    Mun
    Member
    • Topics: 13
    • Replies: 31
    • ☆

    Hi,Sir.

    Bratz manufactures bed linen.From January the company plans to produce a new design of fitted sheet which requires 8 metres of fabric per sheet .Bratz plans to produce 500 sheets in January ,700 sheets in February,and 1700 sheets in March.The company ‘s policy for raw materials is to hold sufficient inventory to meet 40% of the following month’s budgeted production requirements.the fabric costs $3 per metre.At the beginning of January,only 500 metres of fabric were held.

    How many metres of fabric should Bratz budget to purchase in February?

    The answer is 8800 metres

    September 29, 2014 at 3:54 pm #202185
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    But what is your question (since you have written the answer!) ?

    My answer to your other similar question today should make you able to answer this one
    🙂

    September 29, 2014 at 4:10 pm #202187
    Mun
    Member
    • Topics: 13
    • Replies: 31
    • ☆

    Actually I don’t know what is this question about?i can tell you sincerely that,I feel that I keep asking you more question,I think that is quite useful rather than I study back for the notes.Because I am worrying for my Mock exam and the Actual exam as well.

    September 29, 2014 at 4:23 pm #202191
    Mun
    Member
    • Topics: 13
    • Replies: 31
    • ☆

    If I study on this way,is it correct?

    September 29, 2014 at 4:31 pm #202195
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54684
    • ☆☆☆☆☆

    But just as with your other question, the amount to purchase will be the amount needed for production, less the opening inventory, plus the closing inventory.

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    Posts
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