1. Prepare a production budget of finished goods by month and in total for the three-month period...
Question:
1. Prepare a production budget of finished goods by month and in total for the three-month period of January to March from the following information:
The end of month inventories of finished goods must equal 15% of the next month’s sales.
2. The raw material requirement for production in question 1 is 2 kg of raw material per of unit of finished goods. The production budget of finished goods in April is 1250,000 units. Use the answer of question 1 as the production budget of finished goods for January, February, and March. The end of month inventories of raw material must equal 10% of the next month’s needs of raw material. The cost of raw material is TK 5 per kg. Prepare a raw material purchase budget by month and in total for the three-month period of January to March.
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren