A company manufactures three products, namely, A, B and C. The current pattern of sales of A, B and C is in the ratio of 8:2:1 respectively. The relevant data are as follows:
|
Products |
A |
B |
c |
|
Selling Price per unit (Rs.) |
130 |
230 |
417 |
|
Raw Materials per unit (kg) |
0.50 |
1.2 |
2.5 |
|
Direct Materials per unit (kg) |
0.25 |
– |
– |
|
Skilled Labour hours /unit |
4 |
6 |
8 |
|
Semi-skilled Labour hours per unit |
2 |
2 |
3 |
|
Variable Overheads (Rs. per unit) |
20 |
40 |
80 |
The price of raw materials and direct materials, respectively, are Rs. 100 and Rs. 40 per kg. The wage rates of skilled and semi-skilled labour, respectively, are Rs. 6 and Rs. 5. Each operator works for 8 hours a day for 25 days in a month.
The positions of inventories are as follows:
|
Openi |
Raw |
Direct |
A units |
B units |
C units |
|
Opening |
600 |
400 |
400 |
100 |
50 |
|
Closing |
650 |
260 |
200 |
300 |
50 |
The fixed overheads amount to Rs. 2,00,000 per month and the company desires a profit of Rs. 1,20,000 per month. You are required to prepare the following for a month:
- Sales Budget in quantity and value.
- Production Budget showing the quantity to be manufactured.
- Purchase Budget showing the quantity and value.
- Direct Labour Budget showing the number of workers and wages.