a) Analyze the sales budget (in unit and value).b) Analyze the production budget of the Bobo Co.c) Construct a material usage and purchases budget of the Bobo Co. Bobo Co. manufactures two products, namely Product Acu and Product Boo. The followinginformation is for the year 2013:Product AcuProduct BooFinished goods:Estimated SalesPerlis10,000 units20,000 unitsKedah30,000 units50,000 unitsPrice Per UnitRM 12.00RM 20.004,000 units7,000 unitsExpected Closing StockOpening Stock2,000 units3,500 unitsMaterial XMaterial YRaw Material:Opening Stock10,000 units15,000 units20,000 units30,000 unitsExpected Closing StockCost Per UnitRM 1.00RM 2.00Additional information:Each unit of Product Acu required 2 units of Material X and 1 unit of Material Y.Each unit of Product Boo required 2 units of Material X and 2 units of Material Y.Each unit of Product Acu required 1 hour to produce this product.Each unit of Product Boo required 2 hours to produce this product.The company pays the direct labour at the rate of RM1.50 per hour.

The question is related to Budgetory Control. The Sales budget and Production Budget are…

Answered: a) Analyze the sales budget (in unit…

a) Analyze the sales budget (in unit and value). b) Analyze the production budget of the Bobo Co. c) Construct a material usage and purchases budget of the Bobo Co

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...

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Question

a) Analyze the sales budget (in unit and value). b) Analyze the production budget of the Bobo Co. c) Construct a material usage and purchases budget of the Bobo Co.

Bobo Co. manufactures two products, namely Product Acu and Product Boo. The following
information is for the year 2013:
Product Acu
Product Boo
Finished goods:
Estimated Sales
Perlis
10,000 units
20,000 units
Kedah
30,000 units
50,000 units
Price Per Unit
RM 12.00
RM 20.00
4,000 units
7,000 units
Expected Closing Stock
Opening Stock
2,000 units
3,500 units
Material X
Material Y
Raw Material:
Opening Stock
10,000 units
15,000 units
20,000 units
30,000 units
Expected Closing Stock
Cost Per Unit
RM 1.00
RM 2.00
Additional information:
Each unit of Product Acu required 2 units of Material X and 1 unit of Material Y.
Each unit of Product Boo required 2 units of Material X and 2 units of Material Y.
Each unit of Product Acu required 1 hour to produce this product.
Each unit of Product Boo required 2 hours to produce this product.
The company pays the direct labour at the rate of RM1.50 per hour.

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