Use the information below to answer questions that follow:Boko (Pty) Ltd have the following information in their books, which they want to use for planningpurposes. quarter 1quarter 2quarter 3quarter 4budgeted sales in units500007000090000120000desired ending inventory of finished goods10000140001800024000opening inventory of finished goods7000100001400018000direct labour hour used per unit0.50.50.50.5selling price10101010direct labour cost per hour3333Required:a) For each quarter, calculate the:i. Sales budget. ii. Production budget. iii. Direct labour budget.

The budget is prepared to estimate the requirements for the period. The production budget is…

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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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Use the information below to answer questions that follow:
Boko (Pty) Ltd have the following information in their books, which they want to use for planning
purposes.

	quarter 1	quarter 2	quarter 3	quarter 4
budgeted sales in units	50000	70000	90000	120000
desired ending inventory of finished goods	10000	14000	18000	24000
opening inventory of finished goods	7000	10000	14000	18000
direct labour hour used per unit	0.5	0.5	0.5	0.5
selling price	10	10	10	10
direct labour cost per hour	3	3	3	3

Required:
a) For each quarter, calculate the:
i. Sales budget.
ii. Production budget.
iii. Direct labour budget.

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