LEARNING UNIT 1 REVISION EXERCISE 2 Rainbow Ltd produces two products known as Bubbles and Candy. Bubbles is manufactured in department one and Candy is manufactured in department two. The following information is available for August 2019: STANDARD MATERIAL COSTS Material A R3 per kg Material B R4 per kg Direct Labour R5 per hour STANDARD MATERIAL AND LABOUR USAGE BUBBLES CANDY Material A Material B Direct Labour 5 kg 8 kg 10 hours 7 kg 9 kg 15 hours FINISHED GOODS BUBBLES CANDY Forecast sales units Selling price per unit Required closing inventory (units) Opening inventory (units) 8 000 R160 1 500 500 3 000 R220 200 100 DIRECT MATERIALS MATERIAL A MATERIAL B Opening inventory (kg) Required closing inventory (kg) 8 700 9 000 1 700 1 800 Prepare the following budgets for August 2019: Sales budget Production budget Direct material purchases budget Direct labour budget'.
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LEARNING UNIT 1 REVISION EXERCISE 2 |
Rainbow Ltd produces two products known as Bubbles and Candy. Bubbles is manufactured in department one and Candy is manufactured in department two. The following information is available for August 2019:
|
Material A |
R3 per kg |
|
Material B |
R4 per kg |
|
Direct Labour |
R5 per hour |
STANDARD MATERIAL AND LABOUR USAGE
|
|
BUBBLES |
CANDY |
|
Material A Material B Direct Labour |
5 kg 8 kg 10 hours |
7 kg 9 kg 15 hours |
FINISHED GOODS
|
|
BUBBLES |
CANDY |
|
Selling price per unit Required closing inventory (units) Opening inventory (units) |
8 000 R160 1 500 500 |
3 000 R220 200 100 |
DIRECT MATERIALS
|
|
MATERIAL A |
MATERIAL B |
|
Opening inventory (kg) Required closing inventory (kg) |
8 700 9 000 |
1 700 1 800 |
Prepare the following budgets for August 2019:
- Sales budget
- Production budget
- Direct material purchases budget
- Direct labour budget'.
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