Problem:
From the following information as furnished by Maocaro Ltd, prepare a month-wise Production Quantity Budget and a summarized Production Cost Budget for the 6 months that ended on 31 December 2009:
1.Estimated units to be sold:
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units
|
|
units
|
|
july2039
|
4,000
|
November 2009
|
9,000
|
|
August 2009
|
5,000
|
December 2009
|
11,000
|
|
September 2009
|
7,000
|
January 2010
|
10,000
|
|
October 2009
|
8,000
|
|
|
1.Estimated Finished Stock at the end of each month is equal to half of the estimated sales for the next month.
2.Budgeted units to be produced during the year 2009 and details of production cost for the year that ended on 31 December 2009 are as follows:
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Estimated Production for the year
|
1,00,000 units
|
|
Direct Material Cost per unit
|
Rs. 20
|
|
Direct Wage Cost per unit
|
Rs. 12
|
|
Variable Factory Overhead cost per unit
|
Rs. 6
|
|
Total Fixed Factory Overhead for the year
|
Rs. 5,00,000
|