FINANCIAL MANAGEMENT
Data
regarding products, costs and sales levels is as follows:
Product
Material required
X (kg)
Y (litres)
Labour hours required
Skilled (hrs)
Semi-Skilled (hrs)
Sales level (units)
Sales price (R)
Opening stock (units)
Sanitiser
21
2
20 000
30
1.000
Dishwashing soap
34
25
15 500
45
2.000
Ending stock of materials and finished goods will be sufficient to meet 15% of sales
demand on materials and demand. Opening stocks of material X was 3 000 kg and for
material Y was 1 000 litres. Material prices are R15 per kg for material X and R11 per
litre for material Y. Labour costs are R30 per hour for the skilled workers and R19 per
hour for the semi-skilled workers. The warehouse and stores managers have
suggested that a provision should be made for damages and deterioration of items
held in store, as follows:
Product A:
Product B:
Loss of 500 units
Loss of 70 units
Material X:
Loss of 250 kg
Material Y:
Loss of 150 litres
Required to do:
Production Budget
Materials Purchase Budget
