Chapter 4 - Formulas to learn Flashcards
1
Q
Production quantity
A
Sales quantity X
Less opening inv of finished goods (X)
Add closing inv of finished goods req’d X
Production quantity X
2
Q
Production quantity - Defective units
A
Sales quantity X Less opening inv of finished goods (X) Add closing inv of finished goods req'd X Quantity req'd to meet sales demand X Add anticipated defective units X Production quantity X
3
Q
Material usage
A
Quantity req’d to meet production X
Add wastage material X
Materials usage X
4
Q
Materials purchases
A
Materials usage X
Less opening inv of materials (X)
Add closing inv of materials X
Quantity to be purchased X
5
Q
Labour usage
A
Standard labour hours X number of units to be produced
6
Q
Labour cost
A
Standard wage rate X Number of hours
