Question

8.
Prepare a Production Budget for each month and
a summarised Production Cost Budget for the six
months period ending 31st December 2015 from
the following data of product 'X'.
12+8
(a) The units to be sold for different months are
as follows:
July 2015
1,100
August 2015
1,100
September 2015 1,700
October 2015
1,900
November 2015 2,500
December 2015 2,300
January 2016
2,000
(b) There will be no work in progress at the end
of any month
(c) Finished units equal to half the sales for the
next month will be in stock at the end of
each month (including June 2015).
(d) Budgeted production and production cost
for the year ending 31st December 2015 are
as follows:
Production (units)
22,000
Direct materials (per unit) 10
Direct wages (per unit) *4
Total Factory overheads apportioned to products
* 88,000​

Answer 1

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