Avsar Limited has extracted the following budgeting details for the year to 30 September 2009:

1 Sales: 4000 units of V at £500 per unit 7000 units of R at £300 per unit 2 Materials usage (units):

8 Fixed overhead: £193160 (to be absorbed on the basis of direct labour hours).

Required:

(a) Prepare the following budgets:
(i) sales;
(ii) production units;
(iii) materials usage;
(iv) materials purchase; and (v) production cost.

(b) Calculate the total budgeted profit for the year to 30 September 2009.

Transcribed Image Text:

V R 3 Raw material costs (per unit): 01 12 23 L3 4 Raw material stocks: Raw material T15 11 15 322 12 L3 12 10 291 4863 Units 12 L3 At 1 October 2008 1300 1400 400 At 30 September 2009 1400 1000 200 5 Finished stocks: Product Units V At 1 October 2008 110 At 30 September 2009 120 150 15: R 90 6 Direct labour: Budgeted hours per unit Budgeted hourly rate () V 10 12 12 R86