Required: Calculate the following budgets for each of May and June: a) Production of Catrell (in units) b) Materials Usage of Samet (in kgs) c) Materials Purchase of Samet (in kgs) ww d) Direct Labour (in hours)
Required: Calculate the following budgets for each of May and June: a) Production of Catrell (in units) b) Materials Usage of Samet (in kgs) c) Materials Purchase of Samet (in kgs) ww d) Direct Labour (in hours)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![A company manufactures a single product, the Catrell, which requires just one material input called
the Samet. Four 4 kilogrammes (kgs) of Samet is required to produce one unit of Catrell.
Each unit of the Catrell takes 1.5 hours of direct labour to produce.
Inventory held on 30 April was 5,000 finished Catrells, and 15,000 kgs of Samet.
The anticipated demand for the Catrell is as follows:
May
12,000 units
June
12,600 units
July
13,100 units with anticipated opening invento
(in July) of 15,720 kgs of Samet
It will be company policy to maintain raw material inventory at a level of 30% of the following
month's usage, and to maintain finished goods inventory at a level to satisfy 50% of the following
month's estimated sales.
Required:
Calculate the following budgets for each of May and June:
a)
Production of Catrell (in units)
b)
Materials Usage of Samet (in kgs)
c)
Materials Purchase of Samet (in kgs)
d)
Direct Labour (in hours)
|](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe1ffbf3-0e33-4772-8fd2-20a9b6eea6a2%2F04ad61d1-16cb-46d6-8425-00a733b06001%2Fk2t759_processed.png&w=3840&q=75)
Transcribed Image Text:A company manufactures a single product, the Catrell, which requires just one material input called
the Samet. Four 4 kilogrammes (kgs) of Samet is required to produce one unit of Catrell.
Each unit of the Catrell takes 1.5 hours of direct labour to produce.
Inventory held on 30 April was 5,000 finished Catrells, and 15,000 kgs of Samet.
The anticipated demand for the Catrell is as follows:
May
12,000 units
June
12,600 units
July
13,100 units with anticipated opening invento
(in July) of 15,720 kgs of Samet
It will be company policy to maintain raw material inventory at a level of 30% of the following
month's usage, and to maintain finished goods inventory at a level to satisfy 50% of the following
month's estimated sales.
Required:
Calculate the following budgets for each of May and June:
a)
Production of Catrell (in units)
b)
Materials Usage of Samet (in kgs)
c)
Materials Purchase of Samet (in kgs)
d)
Direct Labour (in hours)
|
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