The following are the estimated sales of Philips Co. for about 8 months that is ending on 30 November 2008:
|
2008 |
Units |
2008 |
Units |
|
April |
12,000 |
August |
10,000 |
|
May |
13,000 |
September |
12,000 |
|
June |
9,000 |
October |
14,000 |
|
July |
8,000 |
November |
12,000 |
As a matter of policy, the company maintains the Closing Balance of Finished Goods and Raw Materials as follows:
- Finished Goods—The Closing Stock of a month will be 50% of the estimated sales for the next month.
- Raw Material—The Closing Stock of a month will be equal to the estimated consumption for the next month. Each unit of production consumes 2 kg of raw material costing Rs. 6 per kg.
Prepare the following Budgets for the half-year that is ending on 30 September 2008:
- Production Budget (month-wise in units).
- Raw Material Purchase Budget (month-wise in units and cost).