The following information relating to the 3rd and last quarter of 2003–04 is furnished by a company which manufactures and sells a single product:
|
3rd Quarter (Actual) |
Last Quarter (Estimate) |
||
|
Sales |
Rs. 6,24,000 |
Rs. 6,60,000 |
|
|
Opening Balance |
Closing Balance |
Closing Balance |
|
|
Inventory of Raw Materials and Finished Goods: |
|||
|
Raw Material A (kg) |
25,000 |
23,500 |
25,000 |
|
Raw Material 8 (kg) |
12,650 |
13,400 |
15,000 |
|
Finished Goods (units) |
670 |
700 |
1,000 |
Unit Cost data:
Raw Material A = 10 kg @ Rs. 3 = Rs. 30
Raw Material B = 5 kg @ Rs. 2 = Rs. 10
Direct Labour:
Machine shop [Machine time of 5 hrs @ Rs. 4] = Rs. 20
Assembly [Labour time of 2 hrs @ Rs. 5] = Rs. 10
Production Overheads:
|
Machine shop @ Rs. 12 per machine hour |
|
|
Assembly @ Rs. 10 per labour hour |
|
|
Selling and Administration Overheads: |
20% of production cost |
|
Profit Margin: |
10% on selling price |
Production and sales occur evenly during the Budget period.
You are required to prepare for the last quarter of the year:
(a) Production Budget (in units); (b) Purchase Budget (in quantity and value); and (c) Production Cost Budget.