A company manufactures two products, X and Y. A forecast of units to be sold in the first four months of the year is given below.
|
Particulars |
Product X [units] |
Product Y [units] |
|
January |
1, 000 |
2, 800 |
|
February |
1, 200 |
2, 800 |
|
March |
1, 600 |
2, 400 |
|
April |
2, 000 |
2, 000 |
|
May |
2, 400 |
1, 600 |
Other information is given below.
|
Particulars |
Product X & |
Product Y- Rs. Per Unit |
|
Direct material |
12.50 |
19.00 |
|
Direct labor |
4.50 |
7.00 |
|
Factory overheads per unit |
3.00 |
4.00 |
There will be no opening and closing work in progress [WIP] at the end of any month and finished product [in units] equal to half of the budgeted sale of the next month should be in stock at the end of each month. [including previous year December]
You are required to prepare,
A] Production budget for January to April and
B] Summarized production cost budget.