- This topic has 3 replies, 2 voices, and was last updated 11 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hi Sir,
Need you to help!!!
Budgeted production for 3 mths of next year is as follow:
month 1 : 8000 unit
month 2 : 9000 unit
month 3 : 7000 uniteach unit 4kg of raw material costing $5/kg. Budgeted raw material inventory at the each mths is to be 20% of the following month’s production. What are the budgeted raw material purchases for month 2 of next year?
Thanks 🙂
Opening inventory for month 2 = 20% x 9000 x 4kg = 7200 kg
Closing inventory for month 2 = 20% x 7000 x 4kg = 5600 kg
Production in month 2 needs 9000 x 4kg = 26,000 kgSo purchases in month 2 = 26000 – 7200 + 5600 = 24400 kg
(or 24400 x $5 = $122,000)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.