Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kasurupan Cloth Supply Ltd expects to manufacture and sell school uniforms. It has the following information for 2019 (1) Sales price of a uniform is
Kasurupan Cloth Supply Ltd expects to manufacture and sell school uniforms. It has the following information for 2019 (1) Sales price of a uniform is $80 (2) Product costs per unit Direct material (2 metres @ $15.00) Direct labour (1 hour @ 8.00) Overheads $30.00 $ 8.00 $ 7.00 $45.00 (3) Budgeted sales for the first six month period are Month January February March April May June Number of uniforms 2,500 3,000 2,000 4,000 3,500 3,000 (4) Inventory policy and beginning inventory balances uantities 20 % of the uniforms required for the next month's sales. Balance on 1 January 2019 is 500 uniforms costing $20,000 40% of the materials required for the next month's sales. Balance on 1 January 2019 is 2,000 metres ???? Finished goods Direct materials Required: (a) Prepare production budgets in units for January, February and March (b) Prepare a purchases budget in metres for January and February, giving total (6 marks) (10 marks) purchases in both metres and dollars for each month (c) What is the amount budgeted for cost of goods sold in January? (9 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started