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bec1
bec1 Registered Posts: 4 New contributor 🐸
Hi

trying this practice exam-Completely confused

Can anyone explain
I have a shortage of material and can only purchase 61580meters of material with 8750m opening stock and 15530m closing stock and i have to produce 3000 of unit B as per contract

WHAT i was budgeted to produce was - 2200 units of A and 3298 units of B

A = 10meters per unit B = 12meters per unit

2200x10 = 22000m 3298x12= 39576 total material needed 61576meters
61576-8750+15530=68356*3% wastage 70406.68meters

available limited material 61580-8750+15530=68360meters

but when i take off what i need to make unit B 39576*3%= 40763.28 it leaves me enough material to make 2200 68360-40763.28=27569.72/10m per unit =2756

I know i being really thick somewhere, so can someone please tell me where

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  • Emma594
    Emma594 Registered Posts: 1 New contributor 🐸
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    I dont know if this is the right answer but try dividing by 0.97 instead of multiplying by 3% this gives you 40,800 instead.

    If you are trying to get 100% of good production then take off 3% and use 97%
  • bec1
    bec1 Registered Posts: 4 New contributor 🐸
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    thank you so much
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