Assessment requirements:

ABC Manufacturing Limited makes one product, the Ultra2020. The Management Accountant has gathered the following budgeted information for 2021:

Sales Units 10,000

Selling Price 300

Finished Goods Inventory (Units)

Opening Inventory 500

Closing Inventory 1,500

Budgeted Production Data:

Raw Material Kg per Unit 5kg

Raw Material Price per Kg 10

Direct Labour Hour per Unit 8 Hr

Direct Labour Rate per Hour 11

Raw Materials Inventories

Opening Inventory 4,000kg

Closing Inventory 4,000kg

Fixed Production OAR 18

(Overhead Absorption Rate)

Budgeted Administration & Marketing Overheads 450,000

Depreciation 35,000

Equipment Purchase 280,000

No change is expected in receivables, payables and other short term liabilities. There are no plans to raise extra capital by issuing new shares or obtaining new loans. The company has an overdraft facility of 250,000 with its bank.

The Opening Balance Sheet at 01/01/2021 is expected to be as follows:

Fixed Assets				1,260,000
Current Assets
Inventory			145,000
Receivables			240,000
Cash			32,000
			417,000
Current Liabilities
Payables			105,400
Other ST Liabilities			28,000
			133,400
Net Current Assets				283,600
Net Assets				1,543,600
Equity
Share Capital				750,000
Retained Earnings				793,600
				1,543,600

Required

Calculate all below;

1. The Sales Revenue Budget ()

2. The Production Budget (Units)

3. The Raw Material Usage Budget (Kg)

4. The Raw Material Purchases Budget ()

5. The Direct Labour Budget ()

6. The Overhead Budget ()

7. The Production Cost per Unit ()

8. Budgeted P&L Account

9. Budgeted Balance Sheet

10. Cash Budget week 4 (40 marks)