Question
Priya Biscuits Ltd. produces 2 biscuits products Creamica and product ButterSalt. Raw materials X and Y are required to manufacture both the products. The following
Priya Biscuits Ltd. produces 2 biscuits products Creamica and product ButterSalt. Raw materials X and Y are required to manufacture both the products. The following are the estimated data related to some cost and revenue factors for the next year.
Particulars | Product Creamica | Product Butter Salt |
Budgeted sales (units) | 12,200 | 9,000 |
Opening stock of finished goods (units) | 1,900 | 1,300 |
Closing stock of finished goods (units) | 1,700 | 2,300 |
Budgeted selling price per unit (Rs.) | 26 | 22 |
Raw materials per unit of production |
|
|
X | 4.5 kg | 2.5 kg |
Y | 2 kg | 3 kg |
Other information:
Particulars | Raw material X | Raw material Y |
Opening stock | 2,500 kg | 1,700 kg |
Closing stock | 1,500 kg | 1,700 kg |
Cost per kg of material purchase | Re.0.80 | Rs.1.25 |
Compute the estimated total cost of both the raw materials purchased.
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