Bizara (Pty) Ltd manufactures two products. The following information is available for the financial year ended 31 December 2022: Product South Africa Malawi Product A 6000 5000 Product B 9000 6000 The selling prices per unit are R150 and R100 for Product A and Product B respectively. All goods are sold for cash. Materials quantity requirements and unit costs: Material Tap Tap Product A 3Kg 1Kg Product B 2Kg 1Kg Material cost per kg R14 R2,50 Labour requirements and hourly rates: Department A Department B Product A 2 hours 0,5 hours Product B 1,75 hours 0,5 hours Hourly rate R10,00 R9,00 Inventories of materials: Tap Kap Opening inventory (01 January 2020) 10000 kg 2000 kg Closing inventory (31 December 2020 12000 kg 2500 kg Inventories of finished goods: Opening Inventory Closing Inventory Units Unit Price Units Product A 400 95 200 Product B 500 75 400 Use the relevant information provided above to prepare the following budgeted for 2022: Sales budget Production budget Direct materials purchases budget Direct labour budget
Bizara (Pty) Ltd manufactures two products. The following information is available for the financial year ended 31 December 2022:
|
Product |
South Africa |
Malawi |
|
Product A |
6000 |
5000 |
|
Product B |
9000 |
6000 |
The selling prices per unit are R150 and R100 for Product A and Product B respectively. All goods are sold for cash.
Materials quantity requirements and unit costs:
|
|
|
Material |
|
|
Tap |
Tap |
|
Product A |
3Kg |
1Kg |
|
Product B |
2Kg |
1Kg |
|
Material cost per kg |
R14 |
R2,50 |
Labour requirements and hourly rates:
|
|
Department A |
Department B |
|
Product A |
2 hours |
0,5 hours |
|
Product B |
1,75 hours |
0,5 hours |
|
Hourly rate |
R10,00 |
R9,00 |
Inventories of materials:
|
|
Tap |
Kap |
|
Opening inventory (01 January 2020) |
10000 kg |
2000 kg |
|
Closing inventory (31 December 2020 |
12000 kg |
2500 kg |
Inventories of finished goods:
|
|
Opening Inventory |
|
Closing Inventory |
|
|
Units |
Unit Price |
Units |
|
Product A |
400 |
95 |
200 |
|
Product B |
500 |
75 |
400 |
Use the relevant information provided above to prepare the following budgeted for 2022:
- Sales budget
- Production budget
- Direct materials purchases budget
- Direct labour budget
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