Question: FC manufactures three products from three basic raw material 'SILVER' costing RM 1.00 per unit, 'GOLD' costing RM 2.00 per unit and 'BRONZE' costing RM
FC manufactures three products from three basic raw material 'SILVER' costing RM 1.00 per unit, 'GOLD' costing RM 2.00 per unit and 'BRONZE' costing RM 0.50 per unit. The company operates a budgetary control system. The budgeted data for month of October 2011 is as follows:
| Product | A | B | C |
| Sales (RM) | 750 000 | 540 000 | 840 000 |
| Selling price per unit (RM) | 100 | 108 | 140 |
| Stock of finish products as at 1 October 2011 | 1 500 | 1 000 | 1 250 |
| Standard mixes in units: | |||
| Silver | 2.5 | - | 6 |
| Gold | - | 5 | 4 |
| Bronze | 2.5 | 2.5 | - |
| Raw Material | Silver | Gold | Bronze |
| Stock of raw material as at 1 October 2011 | 12 250 | 10 250 | 8 750 |
The company plans to reduce the stocks at 30 October 2011 by:
Raw material- 20%
Finished products- 10%
You are required to prepare for the month of October 2011 the following budgets:
(i) Material usage (in units)
(ii) Material purchase (in units and value)
(iii) Production (in units)
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