Use the information below to answer questions that follow: Boko (Pty) Ltd have the following information in their books, which they want to use for planning purposes.     quarter 1 quarter 2 quarter 3 quarter 4 budgeted sales in units 50000 70000 90000 120000 desired ending inventory of finished goods 10000 14000 18000 24000 opening inventory of finished goods 7000 10000 14000 18000 direct labour hour used per unit 0.5 0.5 0.5 0.5 selling price 10 10 10 10 direct labour cost per hour 3 3 3 3 Required: a) For each quarter, calculate the: i. Sales budget.  ii. Production budget.  iii. Direct labour budget.

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterC: Inventory Methods
Section: Chapter Questions
Problem 3P: Use the information presented in Problem C-1 to solve this problem. Required Find the cost of the...
icon
Related questions
Question

Use the information below to answer questions that follow:
Boko (Pty) Ltd have the following information in their books, which they want to use for planning
purposes.

 

  quarter 1 quarter 2 quarter 3 quarter 4
budgeted sales in units 50000 70000 90000 120000
desired ending inventory of finished goods 10000 14000 18000 24000
opening inventory of finished goods 7000 10000 14000 18000
direct labour hour used per unit 0.5 0.5 0.5 0.5
selling price 10 10 10 10
direct labour cost per hour 3 3 3 3

Required:
a) For each quarter, calculate the:
i. Sales budget. 
ii. Production budget. 
iii. Direct labour budget.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Inventory Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning