Brenda Ear will have production costs per unit of £5 raw materials, £5.50 direct labour and

£2 variable overheads. Production will be 700 units in January rising by 50 units per month.

Required:

Prepare B. Ear’s production cost budget for January to June.

Q7 Roger Abbit has £1,000 opening stocks of raw materials. Purchases will be £900 in January rising by £200 per month. Production will be 240 units from January to March at £4 raw materials per unit, rising to 250 units per month at £5 raw materials per unit from April to June.

Required:

Prepare R. Abbit’s raw materials budget for January to June. LO1