A company manufactures a single product, the Catrell, which requires just one material input calledthe 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:May12,000 unitsJune12,600 unitsJuly13,100 units with anticipated opening invento(in July) of 15,720 kgs of SametIt will be company policy to maintain raw material inventory at a level of 30% of the followingmonth's usage, and to maintain finished goods inventory at a level to satisfy 50% of the followingmonth'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)|

Name: A company manufactures a single product, the Catrell, which requires
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Description: A company manufactures a single product, the Catrell, which requires just one material input calledthe 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 p

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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)

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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