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iv) Calculate the Materials usage Budget for each material for each of months and in total. v) Calculate the Material Purchase Budget for each material. vi)Calculate the labour hours and cost.

iv) Calculate the Materials usage Budget for each material for each of months and in total. v) Calculate the Material Purchase Budget for each material. vi)Calculate the labour hours and cost.

FINANCIAL ACCOUNTING
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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Please answer (iv - vi) an expert already answered the first 3, thanks.

Question 1 TinyTom makes one product, which sells for $70 each, and prepares functional budgets on a monthly basis. For the first three months of 2021, the following figures are proposed: Sales January 10,000 units February 14,000 units March 12,000 units 10,000 April A closing stock of 10% of the next month's sales is required, the forecast sales for April is 10,000 units. The standard material cost of one unit of finished product is: Material X 4 units at $2 per unit Material Y 8 units at $3 per unit Material Z 2 unit at $5 per unit The standard direct labour cost of one unit of finished product is: 4 hours at $5 per hour Department A Department B Department C 4 hours at $5 per hour 2 hours at $4 per hour Material X Y Material Opening Stock Closing Stock 75,000 80,000 15,000 60,000 75,000 12,500 Required: 1) Calculate the standard prime cost of one unit of finished product. ii) Calculate the Sales Budget for each of months. iii) Calculate the Production Budget for each of months. iv) Calculate the Materials usage Budget for each material for each of months and in total. v) Calculate the Material Purchase Budget for each material. vi) Calculate the labour hours and cost. N
Transcribed Image Text:Question 1 TinyTom makes one product, which sells for $70 each, and prepares functional budgets on a monthly basis. For the first three months of 2021, the following figures are proposed: Sales January 10,000 units February 14,000 units March 12,000 units 10,000 April A closing stock of 10% of the next month's sales is required, the forecast sales for April is 10,000 units. The standard material cost of one unit of finished product is: Material X 4 units at $2 per unit Material Y 8 units at $3 per unit Material Z 2 unit at $5 per unit The standard direct labour cost of one unit of finished product is: 4 hours at $5 per hour Department A Department B Department C 4 hours at $5 per hour 2 hours at $4 per hour Material X Y Material Opening Stock Closing Stock 75,000 80,000 15,000 60,000 75,000 12,500 Required: 1) Calculate the standard prime cost of one unit of finished product. ii) Calculate the Sales Budget for each of months. iii) Calculate the Production Budget for each of months. iv) Calculate the Materials usage Budget for each material for each of months and in total. v) Calculate the Material Purchase Budget for each material. vi) Calculate the labour hours and cost. N
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