Question

X Ltd. makes a single product and is preparing its material usage budget for next year. Each unit of product requires 2 kg of material, and 5,000 units of product are to be produced next year. Opening stock of material is budgeted to be 800 kg and X Ltd. budgeted to increase material stock at the end of next year by 20%. The material usage budget for next year is
(a) 8,000 kg
(b) 9,840 kg
(C) 10,000 kg
(d) 10,160 kg ​

Answer 1

Answer:

C)10000kg

2 kg × 5000units are to be produced next year so

10000kg