A company plans to produce 50,000 units of finished goods during the upcoming budget period. Each finished unit requires 3 units of raw material. At…
CA Intermediate · Cost and Management Accounting · MTP · September 2026
A company plans to produce 50,000 units of finished goods during the upcoming budget period. Each finished unit requires 3 units of raw material. At the beginning of the period, the company has 80,000 units of raw material in inventory. By the end of the period, the company wants to increase the raw material inventory to 90,000 units. Based on this information, calculate how many units of raw material need to be purchased during the budget period.
Suggested Answer and Working Notes:
Correct Answer: Option (C)
(C) 1,60,000 units
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...