The following information has been prepared for Tom Limited for the six months to 30 September 2016:

Question:

The following information has been prepared for Tom Limited for the six months to 30 September 2016: 

Product X uses two units of component A6 and three units of component B9. On 1 April 2016 there were expected to be 100 units of A6 in stock, and 200 units of B9. The desired closing stock levels of each component were as follows:

During the six months to 30 September 2016, component A6 was expected to be purchased at a cost of £5 per unit, and component B9 at a cost of £10 per unit.


Required:

Prepare the following budgets for each of the six months to 30 September 2016:

(a) Direct materials usage budget;

(b) Direct materials purchase budget.

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Accounting For Non-Accounting Students

ISBN: 9781292128979

9th Edition

Authors: John R. Dyson, Ellie Franklin

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