Snaith and Tewkesbury Limited manufactures pencil tins.The directors have decided that the production budget for June 20X6 will be 16 500 tins, and 17 100 tins in the following month. Each tin uses 0.3kg of metal which is bought in at a cost of £6.80 per kilo.The inventory holding policy of the company is to hold 40% of the raw material inventory required for production in the month as opening inventory.
What will be the cost of purchases of the metal in June 20X6?

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The Answer of Snaith and Tewkesbury Limited manufactures pencil tins.The directors have decided that the production budget for June 20X6 will be 16 500 tins, and 17 100 tins in the following month. Each tin uses 0.3kg of metal which is bought in at a cost of £6.80 per kilo.The inventory holding policy of the company is to hold 40% of the raw material inventory required for production in the month as opening inventory.
What will be the cost of purchases of the metal in June 20X6?

Snaith and Tewkesbury Limited Manufactures Pencil Tins