Estimated sales of a product is 50,000 units. Two kinds of raw materials A and B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4 units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000 units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year: finished product, 8,000 units; A, 10,000 units; B 12,000 units. Material Purchase Budget for the Year Particulars Material A Material B Material Required to meet Production Target Material A-33,000 x 3 Material B-33,000 x 4 Add : Desired closing stock at the end of next year Totals Units Units Less : Expected stock at the commencement of next year (opening balance) Quantity of Materials to be purchased

Excel Applications for Accounting Principles
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ISBN:9781111581565
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Problem 18M
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Draw up a material purchase budget from the following information: Use the given
format.
Estimated sales of a product is 50,000 units. Two kinds of raw materials A and
B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4
units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000
units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year:
finished product, 8,000 units; A, 10,000 units; B 12,000 units.

Draw up a material purchase budget from the following information: Use the given
format.
Estimated sales of a product is 50,000 units. Two kinds of raw materials A and
B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4
units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000
units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year:
finished product, 8,000 units; A, 10,000 units; B 12,000 units.
Material Purchase Budget for the Year
Particulars
Material A
Material B
Units
Material Required to meet Production Target
Material A - 33,000 x 3
Material B- 33,000 x 4
Add : Desired closing stock at the end of next year
Totals
Units
Less : Expected stock at the commencement of
next year (opening balance)
Quantity of Materials to be purchased
Transcribed Image Text:Draw up a material purchase budget from the following information: Use the given format. Estimated sales of a product is 50,000 units. Two kinds of raw materials A and B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4 units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000 units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year: finished product, 8,000 units; A, 10,000 units; B 12,000 units. Material Purchase Budget for the Year Particulars Material A Material B Units Material Required to meet Production Target Material A - 33,000 x 3 Material B- 33,000 x 4 Add : Desired closing stock at the end of next year Totals Units Less : Expected stock at the commencement of next year (opening balance) Quantity of Materials to be purchased
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