Question 5 (8 marks) ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year. Sales Period Units Quarter 1 42 000 Quarter 2 48 000 Quarter 3 33 000 A closing inventory of 15% of the next period’s sales is required. The forecast sales for Quarter 4 are 36 000 units. From the company’s history it was observed that the sales units for Quarter 4 of any year are the same. The standard material cost of one unit of finished product is: Cost per unit produced N$ Assembly Department (N$8 per kilo) 24 Finishing Department (N$10 per kilo) 20 REQUIRED: Marks Sub- total Total 5.1 Prepare the Direct Material Budget, in hours, for both Departments for each of the Quarter 1 8 8 Total marks 8
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Question 5 (8 marks)
ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year.
Sales
|
Period |
Units |
Quarter 1 |
42 000 |
|
Quarter 2 |
48 000 |
|
Quarter 3 |
33 000 |
A closing inventory of 15% of the next period’s sales is required. The forecast sales for Quarter
4 are 36 000 units. From the company’s history it was observed that the sales units for Quarter 4 of any year are the same.
The standard material cost of one unit of finished product is:
Cost per unit produced |
N$ |
Assembly Department (N$8 per kilo) |
24 |
Finishing Department (N$10 per kilo) |
20 |
REQUIRED: |
Marks |
||
Sub- total |
Total |
||
5.1 |
Prepare the Direct Material Budget, in hours, for both Departments for each of the Quarter 1 |
8 |
8 |
Total marks |
8 |