Healthy & Fit Ltd. manufactures & sells a single product captioned as 'Exercise bikes'. The estimated units to be sold in the last quarter…
CA Intermediate · Cost and Management Accounting · PYQS · May 2025
Healthy & Fit Ltd. manufactures & sells a single product captioned as 'Exercise bikes'. The estimated units to be sold in the last quarter of the year 2024-25 are as under: Particulars January 2025 February 2025 March 2025 Exercise bikes (in units) 1,500 1,800 1,000 The company's policy is to hold closing stock of finished goods at 20% of the expected sales volume of the succeeding month. Each unit of exercise bike requires one unit of main body with resistance system & two units of pedals. Calculate the number of pedals required to be purchased for January 2025 production.
Suggested Answer and Working Notes:
Correct Answer: Option (C)
3,120 pedals
Topics: Budgets and Budgetary Control
Related Questions in this Topic
- (a) You have been asked to install a costing system in a manufacturing company. What practical difficulties will you exp...
- Apex Mobility Systems Ltd. manufactures smart airport luggage carts used in major international airports. The company op...
- ABC Ltd., a mid-sized manufacturing company, has been facing frequent cost overruns and profit fluctuations over the pas...
- The following figures are extracted from the books of a company: Budgeted overheads ₹ 20,000 (Fixed ₹ 12,000, Variable ...
- A business manufactures a single product and is preparing its production budget for the year ahead. It is estimated that...