Question
Question No. 3 (Marks 15) A company makes two products PS and TG. Sales for next year are budgeted to be 5,000 units of PS
Question No. 3 (Marks 15)
- A company makes two products PS and TG. Sales for next year are budgeted to be 5,000 units of PS and 1,000 units of TG. Planned selling prices are $95 and $130 per unit respectively.
Required:
Prepare the sale budget for the next year. (Marks 2)
- A company makes two products, PS and TG. Forecasts sales for the coming year are 5000 and 1000 units respectively.
The company has the following opening and required closing inventory levels.
|
| PS units | TG UNITS |
| Opening inventory | 100 | 50 |
| Required closing inventory | 1,100 | 50 |
Required:
Prepare the production budget for the coming year. (Marks 3)
- Newton Ltd manufactures three products. The expected production levels for each product are shown below.
|
| Product 1 | Product 2 |
| Budgeted production in units | 2,700 | 4,100 |
Two types of labour are used in producing the three products. Standard times per unit and expected wage rates for the forthcoming year are shown below:
|
| Product 1 | Product 2 |
| Hours per unit |
|
|
| Skilled labour | 3 | 1 |
| Semi-skilled labour | 4 | 4 |
Skilled labour is to be paid at the rate of $9/hour and semi-skilled labour at the rate of $6/hour.
Required:
Complete the following: (Marks 5)
- The number of hours of skilled labor required is
- The cost of this labour is $
- The number of hours of semi-skilled labor required is
- The cost of this labour is $
- A manufacturing business makes and sells widgets. Each widget requires two units of raw materials, which cost $3 each. Production and sales quantities of widgets each month are as follows:
| Month | Sales and production units |
| December (actual) | 50,000 |
| January (budget) | 55,000 |
| February (budget) | 60,000 |
| March (budget) | 65,000 |
In the past, the business has maintained its inventories of raw materials at 100,000 units. However, it plans to increase raw material inventories to 110,000 units at the end of January and 120,000 units at the end of February. The business takes one months credit from its suppliers.
Required:
Calculate the forecast payments to suppliers each month, for raw material purchases
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
