QUESTION 1 ABC LTD. produces marble tiles for the local market. The raw materials required to produce 1 sq. meter is 10kg and the cost per kg is RM25. The production requirement for the month of January, February, March and April 2021 are 3,000; 3,600; 4,400 and 5,000 units respectively. The opening stock of raw materials for the month of January 2021 is 10,000 kg and the company normally holds the closing stock at the end of each month equals to 25% of the following month raw materials requirement. Required: (a) Prepare the Material Purchase Budget in value and quantity for ABC LTD. for the first quarter of 2021. (b) Explain FIVE (5) benefits of preparing the Material Purchase Budget

QUESTION 1 ABC LTD. produces marble tiles for the local market. The raw materials required to produce 1 sq. meter is 10kg and the cost per kg is RM25. The production requirement for the month of January, February, March and April 2021 are 3,000; 3,600; 4,400 and 5,000 units respectively. The opening stock of raw materials for the month of January 2021 is 10,000 kg and the company normally holds the closing stock at the end of each month equals to 25% of the following month raw materials requirement. Required: (a) Prepare the Material Purchase Budget in value and quantity for ABC LTD. for the first quarter of 2021. (b) Explain FIVE (5) benefits of preparing the Material Purchase Budget

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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