Page 324 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 324
Chapter 13
(b) August ingredients purchases = 19,125 kg
August kg
Production quantity 8,350 × 2.5kg 20,875
Closing inventory 6,950 × 2.5kg × 50% 8,687.50
Opening inventory 8,350 × 2.5kg × 50% (10,437.50)
19,125
Test your understanding 3
D
Idle time is 20% of the total hours to be paid for.
Therefore, hours to paid be for = 2,400/0.8 = 3,000
Budgeted labour cost = 3,000 × $10 = $30,000
Test your understanding 4
D
60% of August sales less 2% discount ($60,000 × 60% × 98%) 35,280
25% of July sales ($40,000 × 25%) 10,000
12% of June sales ($35,000 × 12%) 4,200
$49,480
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