From the following information as furnished by Maocaro Ltd, prepare a month-wise Production Quantity Budget and a summarized Production Cost Budget for the 6 months that ended on 31 December 2009:
- Estimated units to be sold:
|
units |
units |
||
|
july2039 |
4,000 |
November 2009 |
9,000 |
|
August 2009 |
5,000 |
December 2009 |
11,000 |
|
September 2009 |
7,000 |
January 2010 |
10,000 |
|
October 2009 |
8,000 |
- Estimated Finished Stock at the end of each month is equal to half of the estimated sales for the next month.
- Budgeted units to be produced during the year 2009 and details of production cost for the year that ended on 31 December 2009 are as follows:
|
Estimated Production for the year |
1,00,000 units |
|
Direct Material Cost per unit |
Rs. 20 |
|
Direct Wage Cost per unit |
Rs. 12 |
|
Variable Factory Overhead cost per unit |
Rs. 6 |
|
Total Fixed Factory Overhead for the year |
Rs. 5,00,000 |