Rimham plc prepares its budgets annually and as the accountant you are responsible for this task. The following standard data is available:

- In order to meet the needs of an expansion programme the company considers it necessary to increase stocks as follows:

You are required to prepare the following:

(a) A schedule giving a detailed standard cost and standard selling price per unit for each product,

(b) The sales budget in units,

(c) The production budget in units,

(d) The direct material purchases budget in both units and value.

Transcribed Image Text:

Material content Material 1 Material 2 Material 3 Material 4 Material prices Material 1 Material 2 Material 3 Product X kg Product Y kg 18 14 12 8 Price per kg 10 Material 4 Labour content Department A Department B Labour rates Product Z kg 24 - 6 18 0.1 0.15 0.25 0.05 Product X Product Y Product Z hours hours hours 2.5 1.5 3 2.5 1.5 3 Department A Department B Rate per hour 1.6 1.2