how to get purchase of raw material?

topcat
topcat Trusted RegularRegistered Posts: 452
Hello,

I thought this would be a nice easy one but i was wrong. The model answer is 100,700kg but i can only get 100,450kg

Info:
  • 20,000 units of finished product are to be manufactured
  • Each unit of finished product contains 4.75kg of raw material
  • 5% of raw material is wasted during manufacture
  • The opening inventory of raw material is 9,800 kg
  • The closing inventory of raw material is to be 10,500 kg

My workings:

20,000 * 4.75kg = 95,000kg

Increase this by 5% for wastage 95,000 + 4750 = 99,750kg

Already have 9,800kg so took this off to leave 99,750 - 9800 = 89,950kg

Need 10,500kg to be left thus 89,950kg + 10,500kg = 100,450kg

where am i off :confused1:

Thank you!

Comments

  • Diddy Mau
    Diddy Mau Well-Known Registered Posts: 238
    Hi
    its Friday and nearly quitting time, so this is a quick workings. apologies if wrong

    you have 5% wastage during manufacture. 4.75/95% (finished)x100% starting =5
    the rest is the same as you have.

    Hope this helps.
  • topcat
    topcat Trusted Regular Registered Posts: 452
    Diddy Mau wrote: »
    Hi its Friday and nearly quitting time, so this is a quick workings. apologies if wrong you have 5% wastage during manufacture. 4.75/95% (finished)x100% starting =5 the rest is the same as you have. Hope this helps.
    Hello Thanks for that all makes sense now! Enjoy your evening I am just starting for 2-3 hours
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