Cost of Materials Budget

jewels.pjewels.p Font Of All KnowledgePosts: 1,774Registered
I am trying to do a question and it asks you to calculate the Materials Purchase Budget and then also the Cost of Materials Budget. I have calculated the Materials Purchase Budget do I just multiply it by the cost per kg to get the Cost of Materials Budget or do I have to do more than that? :confused:

Comments

  • RinskeRinske Font Of All Knowledge Posts: 2,453Registered
    If I remember correct that's about it. But I am not 100% sure on it and am at work at the moment, so I can't look it up to check either.
  • AK002AK002 Font Of All Knowledge Posts: 2,492Registered
    I hate this subject so could be completly wrong, but do you need to watch for stock? As you wouldn't need to buy that.
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    Do you think there is anybody who liked this subject? Aaaagh it just gets worse :mad:
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    Look out for opening and closing stocks and if any wastage incurred, also say for instance you are given kgs and grammes i.e

    cost of materials is £2 per kilo and you use50 grammes of material per unit you have to convert

    so you 50/1000 = 0.05 x 2 = 10 pence per unit then times it by the amount of units



    so say production is 5000 units the materials used is 0.05 x 5000 = 250 kgs and the cost would be 0.10 x 5000 = £500

    (double check 250kgs used x £2 per kg = £500)

    Sorry woffled a bit there
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    jewels.p wrote: »
    Do you think there is anybody who liked this subject? Aaaagh it just gets worse :mad:

    i loved budgets just everything else that hurts my head lol
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    A-Vic wrote: »
    Look out for opening and closing stocks and if any wastage incurred, also say for instance you are given kgs and grammes i.e

    cost of materials is £2 per kilo and you use50 grammes of material per unit you have to convert

    so you 50/1000 = 0.05 x 2 = 10 pence per unit then times it by the amount of units



    so say production is 5000 units the materials used is 0.05 x 5000 = 250 kgs and the cost would be 0.10 x 5000 = £500

    (double check 250kgs used x £2 per kg = £500)

    Sorry woffled a bit there

    Bloomin heck Vic now you have made it even worse! The price is in kg and I used kgs that's enough for now. Don't confuse me even further by having to convert gm to kg! lol

    You're more advanced on this than me remember! lol
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    its just there is 1000 grammes to a kilo.

    But i will now go hide in a dark corner somewhere :(
  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    jewels.p wrote: »
    Do you think there is anybody who liked this subject?


    No.

    Good luck! :)
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    A-Vic wrote: »
    its just there is 1000 grammes to a kilo.

    But i will now go hide in a dark corner somewhere :(

    That is one thing I do know that there is 1000g in a kg I aint being funny but is there really people that dont know that?

    If I get that wrong in an exam it will only be because I never read the question properly not because I didnt know that. Was there a big issue on here about that before something rings a bell?
  • Lou1234Lou1234 Well-Known Posts: 210Registered
    Yep there was a big discussion on it as it was in an exam and people were complaining they didn't know there were 1000g in a kg.

    Think the discussion was mentioned again in Chat a few months ago and someone posted a link to the original thread.
  • RinskeRinske Font Of All Knowledge Posts: 2,453Registered
    A-Vic wrote: »
    Look out for opening and closing stocks and if any wastage incurred, also say for instance you are given kgs and grammes i.e

    But if you are talking about the materials purchasing budget, you already calculated all the stock and wastage calculations in your materials usage budget?

    Hence I thought it was just a simple yes.
  • AK002AK002 Font Of All Knowledge Posts: 2,492Registered
    jewels.p wrote: »
    Do you think there is anybody who liked this subject? Aaaagh it just gets worse :mad:

    Yeah, try F5 lol!!
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    jewels.p wrote: »
    That is one thing I do know that there is 1000g in a kg I aint being funny but is there really people that dont know that?

    If I get that wrong in an exam it will only be because I never read the question properly not because I didnt know that. Was there a big issue on here about that before something rings a bell?

    i wasnt been smart about that i just struggle explaning what i mean so i broke it down, if it was taken the wrong way i apologise
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    I didnt think you were being smart you silly sausage I thought it was quite funny actually! :laugh:
  • AK002AK002 Font Of All Knowledge Posts: 2,492Registered
    Fook me, 1000gs in a KG?

    :(
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    AK002 wrote: »
    Fook me, 1000gs in a KG?

    :(

    shut it you lol
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    Hey nobody else has answered my ORIGINAL query on this thread yet!

    Why oh why does these threads never stay on topic............................ah I remember Vic's here! :lol:

    This thread is now restarting as F.A.O SANDY!
  • RinskeRinske Font Of All Knowledge Posts: 2,453Registered
    jewels.p wrote: »
    Hey nobody else has answered my ORIGINAL query on this thread yet!

    Why oh why does these threads never stay on topic............................ah I remember Vic's here! :lol:

    This thread is now restarting as F.A.O SANDY!
    O dear, would that help?

    I thought A-Vic did answer the original question though.
  • meibakermeibaker Trusted Regular Posts: 481Registered
    i love this unit! NOT!!!
    anyone one the past exams yet?
    i still haven't finished my workbook! ;-(
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    jewels.p wrote: »
    Hey nobody else has answered my ORIGINAL query on this thread yet!

    Why oh why does these threads never stay on topic............................ah I remember Vic's here! :lol:

    This thread is now restarting as F.A.O SANDY!

    yes
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    Rinske wrote: »
    O dear, would that help?

    I thought A-Vic did answer the original question though.

    Vic gave me the EXTREME answer (and I am grateful to you Vic dont think I amnt! :)

    I didnt think I had to do all those workings out as I had already done the Production Budget workings so am still not sure??
  • jewels.pjewels.p Font Of All Knowledge Posts: 1,774Registered
    meibaker wrote: »
    i love this unit! NOT!!!
    anyone one the past exams yet?
    i still haven't finished my workbook! ;-(

    I thought you were on the past papers. I amnt even gonna bother trying them yet as I know I wouldn't get past the first question!
  • meibakermeibaker Trusted Regular Posts: 481Registered
    jewels.p wrote: »
    I thought you were on the past papers. I amnt even gonna bother trying them yet as I know I wouldn't get past the first question!

    i finished my dfs workbook, but didn't attempt on the practice exams as i have not have the answers for it, i am on charpter 10 of my MAC workbook, need to finish asap, but i find it very hard to continue.....
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