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Forums › ACCA Forums › ACCA MA Management Accounting Forums › budget preparation
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
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
🙂
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.
If I study on this way,is it correct?
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.
