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Gamma plc purchases material and refines it before onward sale. Budgeted sales of the refined material are as follows. Litres January 40,000 February 50,000 March
Gamma plc purchases material and refines it before onward sale. Budgeted sales of the refined material are as follows.
Litres
January
40,000
February
50,000
March
30,000
(i)The target month-end inventory of unrefined material is 30% of the material needed for the following month's budgeted production.
(ii)The targeted month-end inventory of refined material is 30% of next month's budgeted sales.
Calculate the budgeted purchases of unrefined material for January.
a) 56,200 litres
b) 49,750 litres
c) 48,250 litres
d) 43,300 litres
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