SALE, PRODUCTION AND RAW MATERIAL PURCHASES BUDGETS ABC Corporation menulactures and sells two products. Thingone and Thingtwo. In July, 2019, Scarboruugh's Budgel Deparument gathered the lollowing dala in order to project sales and budget requirements for 2020: 2020 projected sales: Product Units Price Thingone Thingtwo 60,000 40,000 Rs. 70 Rs. 100 20120 invontorios (in units): Еxpected January 1, 2020 December 31, 2020 Product Desired Thingone Thingtwo 20,000 H,000 25,00N) 9,(000 To produce one unit of Thingone and Thingrwo, the following raw materials are used: Amount Used per Unit Raw Material Thingone Thingtwo 4lbs. A 5 Ibs. в 2lbs 3 Ibs. 1 unit Projecled data lur 2020 with respect to raw materials are as lollows: Anticipated Purchase Price (Rs) Desired Inventories January 01, 2020 December 31, 2020 Expected Inventories Raw Material 32,000 Ibs. 29,000lbs 36,000 Ibs. 32,(000 lhs. 7,(N0 units 6,000 units Required: Based on the above projections and hudget requirements for 2020 for 'thingne and Thingrwo, prepare the following 2020 budgets: a. Sales Budget. b. Production Budget C. Raw materials purchases budget.
SALE, PRODUCTION AND RAW MATERIAL PURCHASES BUDGETS ABC Corporation menulactures and sells two products. Thingone and Thingtwo. In July, 2019, Scarboruugh's Budgel Deparument gathered the lollowing dala in order to project sales and budget requirements for 2020: 2020 projected sales: Product Units Price Thingone Thingtwo 60,000 40,000 Rs. 70 Rs. 100 20120 invontorios (in units): Еxpected January 1, 2020 December 31, 2020 Product Desired Thingone Thingtwo 20,000 H,000 25,00N) 9,(000 To produce one unit of Thingone and Thingrwo, the following raw materials are used: Amount Used per Unit Raw Material Thingone Thingtwo 4lbs. A 5 Ibs. в 2lbs 3 Ibs. 1 unit Projecled data lur 2020 with respect to raw materials are as lollows: Anticipated Purchase Price (Rs) Desired Inventories January 01, 2020 December 31, 2020 Expected Inventories Raw Material 32,000 Ibs. 29,000lbs 36,000 Ibs. 32,(000 lhs. 7,(N0 units 6,000 units Required: Based on the above projections and hudget requirements for 2020 for 'thingne and Thingrwo, prepare the following 2020 budgets: a. Sales Budget. b. Production Budget C. Raw materials purchases budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Solve it sir
Transcribed Image Text:Q. No. 3
SALE, PRODUCTION AND RAW MATERIAL PURCHASES BUDGETS
ABC Corporation manulactures and sells two products. Thingone and Thingtwo. In July, 2019,
Scarboruugh's Budget Deparument gathered the lollowing dala in order to project sales and budget
requirements for 2020:
2020 projected sales:
Product
Units
Price
Thingone
Thingtwo
60,000
40,000
Rs. 70
Rs. 100
20120 inventories (in units):
Product
Еxpected
January 1, 2020
Desired
December 31, 2020
25,0KX)
9,(000
Thingone
Thingtwo
20,00X)
8,000
To produce one unit of Thingone and Thingrwo, the following raw materials are used:
Amount Used per Unit
Raw Material Thingone Thingtwo
5Ibs.
A
4lbs.
3 lbs.
1 unit
B
2lbs
Projected data fur 2020 with respect to raw materials are as folluws:
Anticipated
Purchase Price
(Rs.)
Expected
Inventories
January 01, 2020 December 31, 2020
Desired
Inventories
Raw Material
32,000 Ibs.
29,000lbs
6,000 units
36,000 Ibs.
32,000 Ibs.
7,(X00 units
5
3.
Required:
Based on the above projections and budget requimments for 2020 for Thingane and Thingrwn,
prepare the following 2020 budgets:
a. Sales Budget.
b. Production Budget
e. Raw materials purchases budget.
Page 3 of 4
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education