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i need the answer and explaination too. tq Lysa Manufacturing Pte. Ltd LM is a facemask manufacturing company located at Lost Angeles. LM named its
i need the answer and explaination too. tq
Lysa Manufacturing Pte. Ltd "LM" is a facemask manufacturing company located at Lost Angeles. LM named its special and exclusive facemask as "LYSA". Due to current situation of Corona Virus 2019 ("COVID-19") that required millions of facemasks in United State, LM customers. The new budget details for the three (3) months starting May 2020 are as below: 1. Sales and revenue budget LM projects that the company will sell 50,000 units of LYSA in May 2020, with sales expected to increase by 10% each month. Selling price per unit of LYSA is $25.00 2. Production budget Statement of financial position ("SOFP) as at 30 April 2019 indicates that the finished goods inventory account of LYSA has balance of 10,000 units. LM desires to have an ending inventory each quarter equal to 20% of the next quarter's sales 3. Material budget LYSA contains of special fabrics imported from China. SOFP as at 30 April 2020 indicates that the imported materials has balance of 10,000 units at cost of RM10.00 per unit. The company desired to have ending inventory each month equal to 40% of the same month's production 4. Labour budget The production manager projects that each LYSA will requires 2 hours of direct labour with the cost per hour of $4.00. 5. Manufacturing overhead budget The production manager worked with the cost accountant to project the variable manufacturing cost at $5.00 per unit. Additionally, they projected that fixed cost are $5,000 per month for depreciation of machines and equipment and $5,000 for other fixed cost such as utilities and rental. You are required to prepare budget reports below for the month of May, June and July 2020, a) Sales budget (3 Marks) b) Production budget (4 Marks) c) Material budget (6 Marks) d) Labour budget (5 Marks) e) Manufacturing overhead budget (7 Marks)Step by Step Solution
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