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- January 8, 2019 at 2:40 pm
Wellyboot Manufacturing has two main products ‘Blue boot’ and ‘Red boot’.
Both products use the same common material and labour but in differing proportions.
The annual budget is broken down into four separate 13 week periods. The following information relates to the 13 week period ended 31 March 20X3.
Marketing and production data
Budgeted sales (volume in units). BB. RB
Inventory levels at the start of the budget period.
BB – 165
RB – 365
At the end of the period inventory levels are planned as –
• Finished goods of ‘BB’ should be 7 days sales volume.
• Finished goods of ‘RB’ should be 14 days sales volume.
• Assume a five day week for both sales and production.
Production budgets in units for ‘Blue boot’ and ‘Red boot’ products.
Sir however my doubt Is how to calculate the closing stock of finished goods?
The last adjusment of 7 days and 14 days. This is confusing. What do they mean by 7 days and 14 days of sales volume ?January 8, 2019 at 4:13 pm
This is not a past ACCA exam question, so if you don’t have Kaplan’s answers to work out their meaning I suggest you disregard it.January 9, 2019 at 10:15 am
Sir this is a BPP question available online with no workings for the answers. Hence ive asked the question here
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