Business, 05.12.2021 02:20 jacxirylopez
The following information has been prepared for Tom Limited for the six months to 30 September 2011:
Budgeted production levels for product X
Units
April 140
May 280
June 700
July 380
August 300
September 240
Product X uses two units of component A6 and three units of component B9. On 1 April 2011 there were expected to be 100 units of A6 in stock, and 200 units of B9. The desired closing stock levels of each component were as follows:
Month-end 2011 A6 B9
(units) (units)
30 April 110 250
31 May 220 630
30 June 560 340
31 July 300 300
31 August 240 200
30 September 200 180
During the six months to 30 September 2011, component A6 was expected to be purchased at a cost of £5 per unit, and component B9 at a cost of £10 per unit.
Required:
Prepare the following budgets for each of the six months to 30 September 2011:
(a) direct materials usage budget
(b) direct materials purchase budget
Answers: 1
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The following information has been prepared for Tom Limited for the six months to 30 September 2011:...
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