ABC company produces and selling a single product. The following information relates to their budgeted operations for
Question:
ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year.
Sales | Period | Units |
Quarter 1 | 42 000 | |
Quarter 2 | 48 000 | |
Quarter 3 | 33 000 |
A closing inventory of 15% of the next period’s sales is required. The forecast sales for Quarter 4 are 36 000 units. From the company’s history it was observed that the sales units for Quarter 4 of any year are the same.
The standard material cost of one unit of finished product is:
Cost per Unit produced | N$ |
Assembly Department (N$ 8 per kilo) | 24 |
Finishing Department (N$ 10 per kilo) | 20 |
REQUIRED:
Prepare the Direct Material Budget, in KG and in N$, for both Departments for each of the Quarter 1
Expert Answer:
Answer We have that The standard material cost of one unit of finished product ... View the full answer
An introduction to management science quantitative approaches to decision making
ISBN: 978-1111532222
13th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
