Question

(b) Easecom Company manufactures and sells two products: Thingone and Thingtwo. The company is now planning the raw material requirements of the two products for 2019. To produce the two products the following raw material is required: Direct material Cost per kg Amount used per unit Thingone Thingtwo 5 kilograms 2 kilograms 3 kilograms $8.2 per kilogram $7.5 per kilogram B To keep production smooth, the company has the following inventory requirements: The finished goods inventories (in units): Finished goods Expected 1st January Thingone 2000 units Thingtwo 3000 units Desired 31st December 500 units 1000 units A sales budget for the two products for the year 2019 follows: Product Sales volume Thingone 6000 units | Thingtwo 4000 units

Answer 1

Fasicom_contenu i peoducties budget lin useita) Thing one Thingtoo 1 I soo Todo 6000 6500 Closing shocki, Dezired 3757 Dec (t) sold units Total units available for sale E) spesaing stocki ceputés és Jasa I Geaca Beeducó e cuisine years [units] yooo 5000 (3000) .2000 (2000) 450.

Thing too uso Direet matusial budget material A Goods produced in current year Material A pecunit consumption e Total requirement of A tovo sp.o. 22 500 Kg. al Cost of A 8.20 p.ky [Total " [2x8.20) $18.4506 Material B of Goods produced in Curest Yook 2000 116) Material B pelesit come 4500 a 9000 Laterial B pe unit consumption o tal Oty of B Lequired Ich flera T 6000 (2) Total Sest of B puechased $67500 4500 ] [6000 x 7.5] [9000 x 1.5 Total Total cost cost of " a to B " be puuhagall - 3184500 u n = $112550 167500+45000 ]

Budget is planning for future. It gives a framework to the roaragraut and acts lila Handard for thorn to Cooper Kacin performances_agpiline Jesche Handards leady to better and better performance each the → pesspose of feudgeting. Helps to know the floane required level of production for a given → Act as standard. lesersgebos eesdoek I management said turne provide a framework to to acheine acheine goals (spired) on