Question: QUESTION # 2 ( 3 5 marks ) CLO 4 Details March April May June Sales Forecast 2 0 2 3 Dove bar Zest bar
QUESTION # marks CLO Details March April May June Sales Forecast Dove bar Zest bar units units units units units units units units i To make one unit of Dove bar soap three units of raw material Z is used One unit of Z costs $ Zest bar soap uses two units of raw material K which costs $ each. ii The company has decided that raw material stocks at the end of each month should be held equivalent to twenty percent of the budgeted sales for the month in iii During the year, the company sold one unit of Dove bar soap for $ while one unit of Zest bar soap was sold for $iv The decision was made that at the end of each month there should be in store, sufficient finished goods stock to meet thirty percent of the sales for the next month. Required: For the period, April to June prepare the following budgets: The sales budget for both products. The production budget for both products. The direct raw materials usage budget for both products. The direct raw materials purchase budget for both products. Briefly explain, using an example, what is meant by a "limiting budget factor".
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
