Problem:
Prepare a Production Budget for each month and a Summarized Production Cost Budget for the 6-month ,period ending on 31 December 2010, from the following data:
1.
|
Months
|
Budgeted units to be sold
|
|
July 2010
|
1,100
|
|
August 2010
|
1,100
|
|
September 2010
|
1,700
|
|
October 2010
|
1,900
|
|
November 2010
|
2,500
|
|
December 2010
|
2,300
|
|
January 2011
|
2,000
|
1. Estimated finished stock at the end of each month is equal to half of the estimated Sales for the next month.
2. Budgeted production and production cost for the year ending 31 December 2010 are as follows:
|
Production
|
22,000 units
|
|
Direct Materials per unit
|
Rs. 10
|
|
Direct Wages per unit
|
Rs. 4
|
|
Total Factory Overheads for the year (100% variable)
|
Rs. 88,000
|