A company manufactures two products bubble and squeak

Reference no: EM13233591

A company manufactures two products bubble and squeak. The products are made from 3 materials A,B, and C; the following table shows quantities and price each material used in the products:
Product. A. B. C
Bubble. 1kg. 0.5 kg. 1.5 kg
Squeak. 0.5 kg. 2 kg. 0.5 kg
Price per kilos. £1.50. £1. £2.50
The production schedule for year 3 is as follows:

Month No. 1. 2. 3. 4-6. 7-9. 10-12
Bubble. 3000 3500. 3800. 10000. 11000. 12000
Squeak. 5000. 5500. 6000. 17000. 18000. 18000

Stock positions. A. B. C
Kg. kg. kg
Opening. 6000. 14000. 8000
Closing. 10 per cent higher in the final month of the year's consumption,the production of that Month being one third of the quarter's production.
You are required to prepare materials cost budget and purchasing budget for year 3.

Reference no: EM13233591

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