MGT212 Cost and Management Accounting

Cost and Management AccountingTU Board 2081

(a) The planned production units for coming four months of a company are: JanuaryFebruaryMarchApril12,000 units10,000 units11,000 units9,000 units Each unit of finished product needs 5 kg of…

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(a) The planned production units for coming four months of a company are: JanuaryFebruaryMarchApril12,000 units10,000 units11,000 units9,000 units Each unit of finished product needs 5 kg of material @ Rs. 2 per kg. The company has a policy of keeping ending inventory of raw material is 50 percent of raw material required to same month's production need. Required: Material Purchase Budget for three months ending March. [5] (b) Differentiate between main product and by-product. [5]

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