Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
please show workings 4.02 One product produced by Tufnell Ltd is the Omicron 4. Forecast sales are Month Sales (units) Sales E 2 5,000 6,000
please show workings 4.02 One product produced by Tufnell Ltd is the Omicron 4. Forecast sales are Month Sales (units) Sales E 2 5,000 6,000 100,000 120.000 3 7,000 140,000 4 6,500 130,000 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Closing inventory of finished goods should be 25% of the following month's forecast sales One unit of Omicron 4 is made from 1.5kg of material Each kg cost 4 Inventory of material at the beginning of Month 1 is 3,000 kg This should be increased by 200 kg each month One unit of Omicron 4 takes 30 minutes to manufacture Each employee is paid 10 per hour worked Variable overheads cost 2 for each labour hour worked Each unit of finished goods at the beginning of Month 1 cost 12.90 Fixed production overheads are 5,000 per month Non-production overheads are 7,000 per month Required: For months 1 to 3 a) Calculate units to be produced and the finished good inventory for each month b) Calculate the material usage each month in kg and c) Calculate the material purchases each month in kg and d) Calculate the labour budget each month in hours and e) Calculate the variable overhead budget each month in 1) Prepare an operating budget for Month 1
please show workings
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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