PP Ltd is preparing the production and material purchase budgets for one of their products,
The SUPERX for the forthcoming year.
The following information is available:
Sales demand (units) 30000
Material usage per unit 7 kgs
Estimated opening inventory 3500 units
Required closing inventory 35% higher than opening inventory
How many units of the SUPERX will need to be produced?

Related MCQs

• A company is preparing a production budget for the next year. The following information is relevant : Budgeted sales 10,000 units Opening stock 600 units Closing stock 5% of budgeted sales The production process is such that 10% of the units produced are rejected. What is the number of units required to be produced to meet demand?
• A company has the following budget for the six month: Finished product Materials Sales - 7,000 units Usage per unit - 3 kg Production units - 7200 units Opening stock - 400 kg Closing stock - 500 kg What is the material purchase budget for the month?
• ABC Ltd. has prepared the cash budget for the year 2014-2015 and provided the following information pertaining to sales value : Month Rs. April 2014 2,50,000 May 2014 2,80,000 June 2014 3,20,000 July 2014 3,50,000 20% of the monthly sales are expected to be on cash basis. 60% of the credit sales are expected to be realised in the month following the month of sales and remaining 40% are expected to be realized in the second month following the month of sale. The estimated cash receipts in the month of June 2014 are:
• The budgeted cost of electricity is Rs. 62,500 for 5,000 units of production per month and Rs. 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2014, the budgeted amount of electricity for the month is
• ABC Ltd. has furnished the following information for 4,000 units of product for the year 2014-2015 : Particulars Rs. Direct materials 2,50,000 Direct labour 2,00,000 Manufacturing overheads 2,80,000 (40 % fixed) Selling and administrative overheads 2,70,000 (30 % fixed) The total cost of 4,380 unit is
• Expenses incurred during production other than direct materials and direct labour are called…………..factory expenses; those charged to production on estimated basis are called …………….
• When preparing a production budget, the quantity to be produced equals:
• A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under : Factory overheads 60% of direct wages Administrative overheads 20% of work cost Selling and distribution overheads 25% of work cost it is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
• A formal request by the Head of Department or an authorised officer to the purchase manager to the purchase manager to purchase specified materials.
• Material Usage Variance=Material Mix Variance +…………..