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ILLUSTRATION 6 P Ltd. Manufactures two products using one type of material. Shown below is an extract from the company's Working papers for the next
ILLUSTRATION 6 P Ltd. Manufactures two products using one type of material. Shown below is an extract from the company's Working papers for the next period budget. Product A Product B Budgeted Sales (in units) 3,600 4,800 Budgeted material consumption per product (kgs). 5 3 Budgeted material cost $12 per kg. There are twelve 5-day weeks in the budget period and it is anticipated that sales and production will occur evenly throughout the whole period. It is anticipated that stock at the beginning of the period will be : Product A 1,020 units; Product B 2,400 units ; Raw material 4,300 kgs. The target closing stocks, expressed in terms of anticipated activity during the budget period are : Product A 15 days sales; Product B 20 days sales ; Raw material 10 days consumption. : Prepare Material Purchase Budget showing the quantities and values for the next period
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