Budgeting material purchases. (10 minutes) Tiilikainen, Oy, has prepared a sales budget of 42,000 finished units for
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Budgeting material purchases. (10 minutes) Tiilikainen, Oy, has prepared a sales budget of 42,000 finished units for a 3-month period. The company has a stock of 22,000 units of finished goods on hand at 31 December and has a target finished goods stock of 24,000 units at the end of the succeeding quarter.
It takes 3 litres of direct materials to make 1 unit of finished product.
The company has a stock of 90,000 litres of direct materials at 31 December and has a target closing stock of 110,000 litres. 478 REQUIRED How many litres of direct materials should be purchased during the 3 months ending 31 March?
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Related Book For
Management And Cost Accounting
ISBN: 9780130805478
1st Edition
Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster
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