Question
The Enterprise Company manufactures two products, known as Odds and Ends. Odds are produced in department 1 and Ends in department 2. The following information
The Enterprise Company manufactures two products, known as Odds and Ends. Odds are produced in department 1 and Ends in department 2. The following information is available for 1992.
| Material A | $16 per unit | - | Variable overhead rates (PDLH) | Odds ($) | Ends ($) |
| Material B | $7.2 per unit | - | Indirect materials | 0.80 | 1.2 |
| Direct Labor | $12 per hours | - | Indirect labor | 1.2 | 1.2 |
| Material A | 9 units (Odds) | 5 units (Ends) | Power (Variable) | 0.40 | 0.60 |
| Material B | 8 units (Odds) | 10 units (Ends) | Maintenance (Variable) | 0.40 | 0.20 |
| Direct Labor | 15hours (Odds) | 10hours (Ends) | Fixed overheads |
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| Budgeted sales | 1600units (Odds) | 8500units (Ends) | Depreciation | 80,000 | 100,000 |
| Selling Price | $560 per unit (Odds) | $400 per unit (Ends) | Supervision | 40,000 | 100,000 |
| Ending inventory required Fig. | 90 units (Odds) | 1870units (Ends) | Power (Fixed) | 2000 | 40,000 |
| Opening inventory required Fig. | 85units (Odds) | 170units (Ends) | Maintenance (Fixed) | 3196 | 45,600 |
| Opening inventory | 8000 units (A) | 8500 units (B) |
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| Closing Inventory | 1700 units (A) | 10200units (B) |
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Fixed Assets: Land $170,000, Building and Equipment $ 1292,000 ( $255000 Depreciation included)
Current Assets: Finished goods $99,076, Raw Material $189,200, A/R $289,000, Cash $34,000
Liabilities and Owners Equity: A/P $248,800, Reserves $369,476 Represented by shareholders interest: 1200,000 ordinary share $1 each.
Non manufacturing overheads: Stationery (office) $ 3000, Stationery (Sales) $1000, office salary $30,000, Sales salary $ 72,000, commission $62,000, Car expenses (sales) $20,000, Advertisements $78,000 and Misc. (Office) 10,000
| Details | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 |
| Payments: | $ | $ | $ | $ |
| Materials | 400,000 | 480,000 | 440,000 | 547984 |
| Wages | 400,000 | 440,000 | 480,000 | 646,188 |
| Other Costs | 120,000 | 100,000 | 72,016 | 13,642 |
| Receipts from Customers (000) | 1000 | 1200 | 1120 | 985 |
You are required to prepare master budget for the year 1992 and following budget: 1) Sales Budget 2) Production budget 3) Direct material consumed budget 4) Direct material purchase budget 5) Direct labor budget 6) FOH budget 7) Selling and administration budget 8) Departmental budget 9) Cash Budget 10) Master Budget
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A Guide To Risk Based Internal Audit System In Banks
Authors: CA Shiva Chaudhari
1st Edition
1947498649, 978-1947498648
