* The following information has been prepared for Tom Limited for the six months to 30 September...
Question:
* The following information has been prepared for Tom Limited for the six months to 30 September 2004:
Budgeted production levels for product X Units April 140 May 280 June 700 July 380 August 300 September 240 Product X uses two units of component A6 and three units of component B9. At 1 April 2004 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:
Month end 2004 A6 B9 (units) (units)
30 April 110 250 31 May 220 630 30 June 560 340 31 July 300 300 31 August 240 200 30 September 200 180 During the six months to 30 September 2004, 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 2004:
1 direct materials usage budget; and 2 direct materials purchase budget.
Step by Step Answer: