Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › F2 Practise Test Question – Allegrop Co
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- November 8, 2016 at 3:42 pm #348077llylandraMember
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Can any assistance be given in the calculations of the following please?
The single product manufactured by Allegrop Co requires 2.5 kg of a single raw material per unit
of product. The material costs $9.00 per kg.
Budgets are being prepared and the following additional information is available:
(1) Budgeted sales for the next three periods are:
Period 1 38,600 units
(2) Opening inventory of finished goods in each period is budgeted to be 25% of the budgeted sales demand in that period.
(3) Opening inventory of raw material in each period is budgeted to be one third of the
budgeted material usage in that period.
material in Period 3? kg
What is the budgeted cost of the raw
material usage requirement in period 4
Tasks 4 and 5
It is possible that raw material availability will be restricted to 75,000 kg per period. If this
situation arises, 75,000 kg of the material will be purchased and used in each period. Any sales demand not satisfied in a period would be lost.
Assume that the restriction on raw material supply occurs throughout the budget period
and that there would be no inventory of raw material or finished goods at the beginning of
Period 1. In this circumstance:
What would be the finished goods inventory at the end of Period 2?
Any help would be truly appreciated.November 8, 2016 at 4:15 pm #348089
We do not provide full answers to full questions like this.
It seems you have been set it as a practice test – we do not do your homework for you. If it is not a test then you should have an answer in the same book in which you found the question (if not, then you are using the wrong book – you should be using a Revision Kit from one of the ACCA approved publishers) – if you say which part of the answer is not clear then I will certainly try and help you.)
Have you watched my free lectures? The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
(The question is very similar to one of the ACCA CBE specimen questions called Kinn. The question and the answer are on the ACCA website – that might help you!)
PS I have deleted parts of the question as you originally posted it for copyright reasons. The question will be copyright of whoever printed it, and it will be illegal for us to post it in full on our website.November 8, 2016 at 10:02 pm #348132llylandraMember
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Okay i understand and thank you. I will definitely take a look at the CBE.November 9, 2016 at 8:43 am #348177
You are welcome 🙂November 9, 2016 at 9:21 am #348187adityaluharMember
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- Replies: 2
Sir tomorrow I’m giving f2 for 3rd time I’m very scaredNovember 9, 2016 at 1:53 pm #348215
I wish you all the best for tomorrow.
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