Venus Boxes Ltd manufactures and distributes two types of cardboard boxes used in shipping canned food,...

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Venus Boxes Ltd manufactures and distributes two types of cardboard boxes used in shipping canned food, and fruit and vegetables. The company is now planning the raw materials needs of the two products - the canned food box (type C) and the perishable fruit and vegetables box (type P) for 2012. To produce the two products the following raw materials are required: Direct material Paperboard Corrugating Cost per kg $0.30 per kilogram Type C 1 kilograms Amount used per box Type P $0.15 per kilogram 3 kilograms 2 kilograms 6 kilograms To keep production and shipments moving smoothly, the company has the following inventory requirements: The finished goods inventories (in boxes): Finish goods Expected 1 January Desired 31 December Box type C 12,000 boxes 8,000 boxes Box type P 22,000 boxes 15,000 boxes Direct material inventory levels: Direct material Expected 1 January Desired 31December Paperboard 13,000 kilograms 5,000 kilograms Corrugating 6,000 kilograms 12,000 kilograms The company maintains no work in process inventories. A sales budget for the two types of boxes for the year 2012 follows: Product Box type C Box type P Sales volume 50,000 boxes 70,000 boxes Required: Using the information provided: i) Prepare a production budget (in boxes) for box type C and box type P for 2012. (4 Marks) Venus Boxes Ltd manufactures and distributes two types of cardboard boxes used in shipping canned food, and fruit and vegetables. The company is now planning the raw materials needs of the two products - the canned food box (type C) and the perishable fruit and vegetables box (type P) for 2012. To produce the two products the following raw materials are required: Direct material Paperboard Corrugating Cost per kg $0.30 per kilogram Type C 1 kilograms Amount used per box Type P $0.15 per kilogram 3 kilograms 2 kilograms 6 kilograms To keep production and shipments moving smoothly, the company has the following inventory requirements: The finished goods inventories (in boxes): Finish goods Expected 1 January Desired 31 December Box type C 12,000 boxes 8,000 boxes Box type P 22,000 boxes 15,000 boxes Direct material inventory levels: Direct material Expected 1 January Desired 31December Paperboard 13,000 kilograms 5,000 kilograms Corrugating 6,000 kilograms 12,000 kilograms The company maintains no work in process inventories. A sales budget for the two types of boxes for the year 2012 follows: Product Box type C Box type P Sales volume 50,000 boxes 70,000 boxes Required: Using the information provided: i) Prepare a production budget (in boxes) for box type C and box type P for 2012. (4 Marks)

Answer rating: 100% (QA)

Answer To prepare the production budget for box type C and box type P for 2012 we ne... View the full answer