Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(b) Easecom Company manufactures and sells two products: Thingone and Thingtwo. The company is now planning the raw material requirements of the two products for

image text in transcribedimage text in transcribed

(b) Easecom Company manufactures and sells two products: Thingone and Thingtwo. The company is now planning the raw material requirements of the two products for 2019. To produce the two products the following raw material is required: Direct material Cost per kg Amount used per unit Thingone Thingtwo 5 kilograms 2 kilograms 3 kilograms $8.2 per kilogram $7.5 per kilogram B To keep production smooth, the company has the following inventory requirements: The finished goods inventories (in units): Finished goods Expected 1st January Thingone 2000 units Thingtwo 3000 units Desired 31st December 500 units 1000 units A sales budget for the two products for the year 2019 follows: Product Sales volume Thingone 6000 units | Thingtwo 4000 units Required: Using the information provided: i) Prepare a production budget (in units) for Thingone and Thingtwo for 2019. (2 Marks) ii) Prepare a direct materials budget showing the cost of material A and B required to be purchased for 2019. (2 Marks) (e) What is a budget? Identify two (2) purposes of budgeting. (3 marks) (b) Easecom Company manufactures and sells two products: Thingone and Thingtwo. The company is now planning the raw material requirements of the two products for 2019. To produce the two products the following raw material is required: Direct material Cost per kg Amount used per unit Thingone Thingtwo 5 kilograms 2 kilograms 3 kilograms $8.2 per kilogram $7.5 per kilogram B To keep production smooth, the company has the following inventory requirements: The finished goods inventories (in units): Finished goods Expected 1st January Thingone 2000 units Thingtwo 3000 units Desired 31st December 500 units 1000 units A sales budget for the two products for the year 2019 follows: Product Sales volume Thingone 6000 units | Thingtwo 4000 units Required: Using the information provided: i) Prepare a production budget (in units) for Thingone and Thingtwo for 2019. (2 Marks) ii) Prepare a direct materials budget showing the cost of material A and B required to be purchased for 2019. (2 Marks) (e) What is a budget? Identify two (2) purposes of budgeting

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

Auditing Theory And Practice

Authors: Jerry R. Strawser, Robert H. Strawser

9th Edition

0873939336, 978-0873939331

More Books

Students also viewed these Accounting questions

Question

Solve the proportion for x: 3.4 . 12 96 3 3 b.

Answered: 1 week ago