Question
Task 2 Manufacturing Budget Case Study Post Me assembles timber mailboxes which he sells to homeowners and builders for $48.00 each. Each mailbox requires the
Task 2 Manufacturing Budget Case Study
Post Me assembles timber mailboxes which he sells to homeowners and builders for $48.00 each. Each mailbox requires the following:
| Assorted timber lengths | $8.00 |
| 1 metal number | $2.50 |
| Direct labour (20 mins at $30 per hour) | $10.00 |
| Manufacturing overheads (80% of direct labour cost) | $8.00 |
| Total | $28.50 |
Kevin expects the following sales in units:
| June | July | August | September | October |
| 210 | 220 | 240 | 270 | 300 |
Post Me requires inventory at the end of each month equal to 30% of the next months expected sales. Prepare your budget on the basis that this assumption will be met.
Required:
Prepare the following budgets for the quarter ended 30 September:
- Sales
- Production
- Raw Materials Usage
- Direct Labour
- Manufacturing Overhead
- Cost of Production
- Cost of Goods Sold
- Trading Statement
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
