completion of budget schedules: manufacturer

P9.39 (appendix) Completion of budget schedules: manufacturer School Days Furniture Ltd manufactures a variety of desks, chairs, tables and book shelves that are sold to public schools in Western Australia. The financial accountant of the desk division is currently preparing the budget for the third quarter of this year. The following sales have been forecast for the third quarter. LO9.9 9.11 5000 desks July August September 6000 desks 7500 desks Each desk requires 3 metres of wooden planks and 1.5 hours of direct labour. Each desk sells for $200. Wooden planks costs $18 per metre, and at the end of each month there is enough wood remaining to cover 10 per cent of the next month's production requirements. The division incurs a cost of $25 per hour for direct labour, including on-costs. The division ends each month with enough finished goods to satisfy 20 per cent of the following month's sales. 8 PART THREE INFORMATION FOR MANAGING RESOURCES Required: 1. In an Excel spreadsheet construct and complete the following budget schedules. (a) Sales budget July August September 5 000 Sales units Selling price per unit Sales revenue S 200 S1 000 000 (b) Production budget (units) July August September 5 000 1 500 Sales units Add ending inventory Total units required Less opening inventory Planned production 1 200 6 200 1 000 5 200 (c) Raw materials purchases July August September 5 200 15 600 1 890 2 700 Planned production Raw material per unit Raw material required for production Add ending inventory of raw materials Total requirements Less ending inventory of raw materials Planned purchases of raw material in metres Cost per metre Planned purchases of raw material in dollars 17 490 1 560 15 930 $ 18 $286 740 (d) Direct labour budget July August September 5 000 1.5 Sales units Direct labour per unit Direct labour hours required Cost per hour Planned direct labour cost 7 500 $ 25 $187 500