4- Labour budget

5- Manufacturing Overhead budget

6- Cost of goods produced budget

Question (Homework): Ayesha Manufacturing Company, a manufacturing business that sells units, wants a master budget prepared for the first three months of this year (July, August and September) of the year 2020 The managers of the different departments have provided the following information: The Sales Manager has projected the following sales forecast: July 8,600 units August 9,600 units September 7,600 units Projected selling price is $95.00/unit Your Production Manager gave the following information: Ending Finished goods Inventory is to 10% of next month's sales. October's Projected Sales 9,000 units June's 2020 Ending Inventory was 1,200 units. The Manufacturing Manager has estimated the following: Each unit will require 150 grams of material at the rate of So.20 per gram. (There is no opening or closing inventory or raw materials. The Personnel Manager has estimated that Direct Labour will be projected at: -1.50 hour of Direct Labour per unit Direct Labour Cost: 58.00/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $6 per Direct Labour hours Fixed Overheads to be 55,600 per month Required: You need to make the following: Sales budget Production budget - Material budget Labour budget Manufacturing Overhead budget Cost of goods produced budget 1 Sales Budget Units to be sold X Projected Selling Price Budgeted Sales Revenue July August September 8600 9600 7600 95$ 95$ 95 8,17,000 $9,12,000 $ 7,22,000 $ $ 2 Production Budget Units to be sold Add: Desired Ending Inventory Total Units needed Less: Estimated Beginning Inventory Units to be produced July 8600 960 9560 1200 8360 August September 9600 7600 760 900 10360 8500 960 760 9400 7740 Explanations: Desired Ending Inventory July = 9600 * 10% = 960 August = 7600 * 10% = 760 September = 9000 * 10% = 900 3 Material Budget Units to be produced X Material required per unit (grams) Total Materials Purchased (grams) X Rate per gram Budgeted Material Cost July August September 8360 9400 7740 150 150 150 1254000 1410000 1161000 0.20$ 0.20 $ 0.20 2,50,800 $2,82,000 $2,32,200 $ $