Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company manufactures a single product, the Catrell, which requires just one material input called the Samet. Four 4 kilogrammes (kgs) of Samet is required

A company manufactures a single product, the Catrell, which requires just one material input called the Samet. Four 4 kilogrammes (kgs) of Samet is required to produce one unit of Catrell. Each unit of the Catrell takes 1.5 hours of direct labour to produce. Inventory held on 30 April was 5,000 finished Catrells, and 15,000 kgs of Samet. The anticipated demand for the Catrell is as follows: May June July 12,000 units 12,600 units 13,100 units with anticipated opening inventory (in July) of 15,720 kgs of Samet It will be company policy to maintain raw material inventory at a level of 30% of the following month's usage, and to maintain finished goods inventory at a level to satisfy 50% of the following month's estimated sales. Required: Calculate the following budgets for each of May and June: a) Production of Catrell (in units) b) Materials Usage of Samet (in kgs) c) Materials Purchase of Samet (in kgs) d) Direct Labour (in hours) (4 marks) (1 mark) (4 marks) (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cpa Financial Accounting Examination Preparation Guide

Authors: Azhar Ul Haque Sario

1st Edition

979-8223666547

More Books

Students also viewed these Accounting questions