A shirt manufacturing company expects to be able to sell15,000 shirts in April 2022. Sales volumes are expected togrow at 5% per month cumulatively thereafter throughout2022. The following additional information is available.1. The company intends to carry a stock of finished garmentssufficient to meet 40% of the next month's sales.2. The company intends to carry sufficient raw material stock tomeet the following month's production.3.Estimated costs and revenues per shirt are as follows:Sales pricePer shirtK30Raw materialsFabric at K12 per square metre (12)Dyes and cottonDirect labour at K8 per hourFixed overheads at K4 per hourProfit(3)(4)(2)K9Required:Prepare the following budgets on a monthly basis for each ofthe three months July to September 2022:(i) A sales budget showing sales units and sales revenue;(ii) A production budget (in units);(iii) A fabric purchases budget (in square metres).(iv) Labour hours and cost budget

Given Information:Expected sales for April 2022: 15,000 shirts.Sales grow at 5% per month…

Answered: A shirt manufacturing company expects…

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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