Page 154 - P1 Integrated Workbook STUDENT 2018
P. 154
Chapter 9
In an exam you could be asked to create any element of the above
budgets and in the case study you could be asked to interpret them.
Particular care should be taken with the materials budgets.
The materials budgets
Material usage budget =
Production budget × standard material usage per unit
Material purchases budget =
Materials usage budget quantity X
Closing inventory of materials X
Opening inventory of materials (X)
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X
@ Standard cost of materials $
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Budgeted materials cost $X
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