F2 Practise Test Question – Allegrop Co

Good Day,

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
Period 2

(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.

Task 4
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.