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Hi, I was wondering if anyone is working through the Kaplan book and come across question 5 on chapter 13 ‘Budgeting’?
I’m a little confused where they have got the first couple of answers from.
I thought the answer to production budget would be 5000-100 (opening inventory) + 1000 (closing inventory) = 5900
But the book states 6000?
Also on the raw material usage budget how do we know that the kg per unit is 12?
Thanks in advance
Closing inventory is 1,100 units not 1,000 units.
It is given in the question that
RM X: kg per unit 12I’m not sure if I misreading the question but it says required closing inventory 1000.
Also the Kg just says ‘raw material X: Kg per unit … 100 units’.
Does it state in a different part of the question that it is 12 kg per unit and I might be looking in the wrong place?I am sorry, but I do not have the Kaplan book (only the BPP Revision Kit).
Have you watched my free lectures on budgeting? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
@carly129 said:
I’m not sure if I misreading the question but it says required closing inventory 1000.Also the Kg just says ‘raw material X: Kg per unit … 100 units’.
Does it state in a different part of the question that it is 12 kg per unit and I might be looking in the wrong place?I have an earlier version and those details are given in the question. There may be some misprints in the newer versions.
You don’t need to worry too much about the figures. If you’re understanding the method well, thats enough. Try other questions, that might help.Yes I am finding the lectures very helpful thank you.
I think it must be a misprint. Thanks for your help
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