Smart Gear Ltd has been in business for many years supplying Tablet screens to wholesalers. The production for the year 2023 is currently being planned and the following is an extract from the sales budget for the "10 inch" screens: Period Unit (Screen) 1 23,000 2 25,000 3 27,000 4 22,000 5 20,000 The inventory (stock) of screens at the start of each month is to be equal to 20% of the sales estimate for the month. However, the company is planning to have 6,000 screens in stock at the start of period 1. There is no work-in-progress at the end of any period. The Tablet screens would need a special type of plastic and it takes 4 kg of plastic to make 8 screens. Each 40 kilogrammes (kg) of plastic are forecast to cost £200. An amount of plastic equal to 25% of each period's usage is required to be in stock at the start of each month. However, the stock at the start of period 1 will be 550 kg of plastic. Required For the first 3 periods, prepare: a) The production budget (in number of screens produced); b) The materials usage cost budget; c) The materials purchase cost budget.

Smart Gear Ltd has been in business for many years supplying Tablet screens to wholesalers. The production for the year 2023 is currently being planned and the following is an extract from the sales budget for the "10 inch" screens: Period Unit (Screen) 1 23,000 2 25,000 3 27,000 4 22,000 5 20,000 The inventory (stock) of screens at the start of each month is to be equal to 20% of the sales estimate for the month. However, the company is planning to have 6,000 screens in stock at the start of period 1. There is no work-in-progress at the end of any period. The Tablet screens would need a special type of plastic and it takes 4 kg of plastic to make 8 screens. Each 40 kilogrammes (kg) of plastic are forecast to cost £200. An amount of plastic equal to 25% of each period's usage is required to be in stock at the start of each month. However, the stock at the start of period 1 will be 550 kg of plastic. Required For the first 3 periods, prepare: a) The production budget (in number of screens produced); b) The materials usage cost budget; c) The materials purchase cost budget.

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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