Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Attached is the question: Question 3 {1 marks} a] Why do successful companies tend to use the bottomup approach to establish a master budget? [2

Attached is the question:

image text in transcribed
Question 3 {1" marks} a] Why do successful companies tend to use the bottomup approach to establish a master budget? [2 marks] b] Green Tea's data shownr the following information for the financial year, beginning July 2020: Julyr Aug. Sept. Oct. Nov. Estimated sales {units} 25,000 25,000 27,000 27,500 28,000 Sales price per unit 531 531 $31 $31 $31 Direct labour per unit $1.25 $1.75 $1.50 $1.50 $1.50 Labour rate per hour 521 521 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month's needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of materials. Required: i} Prepare a production budget for the first quarter of the year [i.e. July September]. [2 marks] ii} Prepare a direct materials budget for the first quarter of the year (Le. July September], to include total direct material purchases {5}. {3 marks] SHOW YOUR WORKING

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

9th Edition

1259654699, 978-1259654695

More Books

Students also viewed these Accounting questions

Question

Why are there problems with revenue recognition?

Answered: 1 week ago