24. CB Ceramics Ltd makes a number of products including a ceramic candle holder. The expected sales in for the third quarter of 2021 are: July 6,000 August September Total 9,000 Sales Quantity 8,000 23,000 The management of CB Ceramics Ltd have determined that they wish to have ending inventory equal to 10% of the next month's sales and this has been the practice throughout the year. The sales for October are expected to be 8,000 units. Each candle holder requires 100g of clay and ending inventory is required to be 20% of the next month's production requirement. The clay is purchased for £12 per kg a) Prepare a production budget by month and in total for the third quarter of 2021 b) Prepare a raw materials budget for the month of August
24. CB Ceramics Ltd makes a number of products including a ceramic candle holder. The expected sales in for the third quarter of 2021 are: July 6,000 August September Total 9,000 Sales Quantity 8,000 23,000 The management of CB Ceramics Ltd have determined that they wish to have ending inventory equal to 10% of the next month's sales and this has been the practice throughout the year. The sales for October are expected to be 8,000 units. Each candle holder requires 100g of clay and ending inventory is required to be 20% of the next month's production requirement. The clay is purchased for £12 per kg a) Prepare a production budget by month and in total for the third quarter of 2021 b) Prepare a raw materials budget for the month of August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
using this layout
Transcribed Image Text:Units
Budgeted sales
Add de sired ending inventory
July
25,000
August
15,000
3,000
28,000
5,000
Less beginning inventory
Required production
23,000
Transcribed Image Text:CB Ceramics Ltd makes a number of products including a ceramic candle
holder. The expected sales in for the third quarter of 2021 are:
24.
July
6,000
August September Total
9,000
Sales Quantity
8,000
23,000
The management of CB Ceramics Ltd have determined that they wish to have ending
inventory equal to 10% of the next month's sales and this has been the practice
throughout the year. The sales for October are expected to be 8,000 units.
Each candle holder requires 100g of clay and ending inventory is required to be 20%
of the next month's production requirement. The clay is purchased for £12 per kg
a) Prepare a production budget by month and in total for the third quarter of 2021
b) Prepare a raw materials budget for the month of August
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education