62. The following are the estimates sales of Philips Co. for about 8 months that is endingon November 2008.2008AugustSeptemberOctober2008UnitsUnitsAprilMayJune12,00013,0009,0008,00010,00012,00014,00012,000JulyNovemberAs a matter of policy, the company maintains the Closing Balance of Finished goodsand Raw Materials as follows:i)Finishes goods: The closing stock of a month will be 50% of the estimated salesfor the next monthii)Raw Material: The closing stock of a month will be equal to the estimatedconsumption for the next month. Each unit production consumes 2 kg of rawmaterial costing Rs. 6 per kg.16Prepare the following budget for the half year that is ending on 30 September, 2008.i)ii)Production Budget (month wise in units)Raw Material Purchase Budget (month wise in units and cost)Hint: (Total estimated production 65,000 units and total raw material purchased 7,86,000 units).

Given that, Finished goods closing stock of every month = 50% of estimated sales for next month.…

62. The following are the estimates sales of Philips Co. for about 8 months that is ending on November 2008. 2008 Units 2008 Units April May June 12,000 13,000 9,000 8,000 August September October 10,000 12,000 14,000 July November 12,000 As a matter of policy, the company maintains the Closing Balance of Finished goods and Raw Materials as follows: Finishes goods: The closing stock of a month will be 50% of the estimated sales for the next month i) Raw Material: The closing stock of a month will be equal to the estimated consumption for the next month. Each unit production consumes 2 kg of raw material costing Rs. 6 per kg. ii) 16 Prepare the following budget for the half year that is ending on 30 September, 2008. i) ii) Production Budget (month wise in units) Raw Material Purchase Budget (month wise in units and cost)

62. The following are the estimates sales of Philips Co. for about 8 months that is ending on November 2008. 2008 Units 2008 Units April May June 12,000 13,000 9,000 8,000 August September October 10,000 12,000 14,000 July November 12,000 As a matter of policy, the company maintains the Closing Balance of Finished goods and Raw Materials as follows: Finishes goods: The closing stock of a month will be 50% of the estimated sales for the next month i) Raw Material: The closing stock of a month will be equal to the estimated consumption for the next month. Each unit production consumes 2 kg of raw material costing Rs. 6 per kg. ii) 16 Prepare the following budget for the half year that is ending on 30 September, 2008. i) ii) Production Budget (month wise in units) Raw Material Purchase Budget (month wise in units and cost)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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