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:
|
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 |
- Estimated finished stock at the end of each month is equal to half of the estimated Sales for the next month.
- 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 |