Question 1TinyTom makes one product, which sells for $70 each, and prepares functional budgets on amonthly basis. For the first three months of 2021, the following figures are proposed:SalesJanuary10,000 unitsFebruary14,000 unitsMarch12,000 units10,000AprilA closing stock of 10% of the next month's sales is required, the forecast sales for April is 10,000units.The standard material cost of one unit of finished product is:Material X4 units at $2 per unitMaterial Y8 units at $3 per unitMaterial Z2 unit at $5 per unitThe standard direct labour cost of one unit of finished product is:4 hours at $5 per hourDepartment ADepartment BDepartment C4 hours at $5 per hour2 hours at $4 per hourMaterialXYMaterialOpening StockClosing Stock75,00080,00015,00060,00075,00012,500Required: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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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 14,000 units February March 12,000 units April 10,000 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 2 unit at $5 per unit Material Z The standard direct labour cost of one unit of finished product is: Department A 4 hours at $5 per hour Department B 4 hours at $5 per hour 2 hours at $4 per hour Department C Material Material X Y Z 75,000 80,000 15,000 Opening Stock Closing Stock 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.

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 14,000 units February March 12,000 units April 10,000 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 2 unit at $5 per unit Material Z The standard direct labour cost of one unit of finished product is: Department A 4 hours at $5 per hour Department B 4 hours at $5 per hour 2 hours at $4 per hour Department C Material Material X Y Z 75,000 80,000 15,000 Opening Stock Closing Stock 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.

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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