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Please  make the production budget in units and materials purchases budget

Please  make the production budget in units and materials purchases budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Please  make the production budget in units and materials purchases budget 

All purchases are paid in the same month to the supplier. Management have decided closing stock at the end of each month should be as follows: Raw materials: Finished goods: 10% of the next month's usage 10% of the next month's sales. Overheads Fixed overheads are estimated at £5,000 per month and are paid in the month they were incurred. £1,500 of this amount relates to depreciation. Insurance of £12,500 is due to be paid in April. Capital Expenditure April: May: June: Computer Delivery van Additional Delivery van £148,000 £280,000 £230,000 Corporation Tax of £35,900 is due to be paid in May The opening bank balance is £43,500 overdrawn. Required: a) Prepare the following budgets for April, May and June:
Transcribed Image Text:All purchases are paid in the same month to the supplier. Management have decided closing stock at the end of each month should be as follows: Raw materials: Finished goods: 10% of the next month's usage 10% of the next month's sales. Overheads Fixed overheads are estimated at £5,000 per month and are paid in the month they were incurred. £1,500 of this amount relates to depreciation. Insurance of £12,500 is due to be paid in April. Capital Expenditure April: May: June: Computer Delivery van Additional Delivery van £148,000 £280,000 £230,000 Corporation Tax of £35,900 is due to be paid in May The opening bank balance is £43,500 overdrawn. Required: a) Prepare the following budgets for April, May and June:
3. Furniture Island manufactures customised dining tables and is in the process of preparing its budgets for the next quarter (April, May and June). To date the following budgeted information has been compiled for one of its popular products 'Mode': Mode Budgeted sales (units) Аpril May 3,000 5,500 3,500 June July 4,000 Budgeted selling price per unit: £80 80% of sales are on credit. Credit terms are strictly 30 days. 1% of all sales will result in bad debt. Trade receivables outstanding at 31* March were £65,000 (which are all collectable in April). The standard material usage for one unit of Mode is as follows: Mode Material X (kilogrammes) 3 kg Material planner has provided the following information: Material X Mode 1,000 kg Opening inventory (April) Closing inventory (June) Purchase price (per £2.50 kilogramme) 1,200 units 1,800 kg
Transcribed Image Text:3. Furniture Island manufactures customised dining tables and is in the process of preparing its budgets for the next quarter (April, May and June). To date the following budgeted information has been compiled for one of its popular products 'Mode': Mode Budgeted sales (units) Аpril May 3,000 5,500 3,500 June July 4,000 Budgeted selling price per unit: £80 80% of sales are on credit. Credit terms are strictly 30 days. 1% of all sales will result in bad debt. Trade receivables outstanding at 31* March were £65,000 (which are all collectable in April). The standard material usage for one unit of Mode is as follows: Mode Material X (kilogrammes) 3 kg Material planner has provided the following information: Material X Mode 1,000 kg Opening inventory (April) Closing inventory (June) Purchase price (per £2.50 kilogramme) 1,200 units 1,800 kg
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