XYZ company produces three products X,Y and Z. for the coming accounting period budgets are to be prepared based on following information.
Budgeted Sales
Product X 2,000 at RO 100 each
Product Y 4,000 at RO 130 each
Product Z 3,000 at RO 150 each
Budgeted usage of raw material
|
|
RM11
|
RM22
|
RM33
|
|
Product X
|
5
|
2
|
-
|
|
Product Y
|
3
|
2
|
2
|
|
Product Z
|
2
|
1
|
3
|
|
Cost per unit of material
|
RO 5
|
RO 3
|
RO 4
|
Finished stocks budget
|
|
Product X
|
Product Y
|
Product Z
|
|
Opening
|
500
|
800
|
700
|
|
Closing
|
600
|
1,000
|
800
|
Raw material stocks budget
|
|
RM11
|
RM22
|
RM33
|
|
Opening
|
21,000
|
10,000
|
16,000
|
|
Closing
|
18,000
|
9,000
|
12,000
|
|
|
Product X
|
Product Y
|
Product Z
|
|
Expected hours per unit
|
4
|
6
|
8
|
|
Expected hourly rate (labour)
|
RO 9
|
RO 9
|
RO 9
|
Required;
Draw up the following functional budgets.
a) Sales budget in terms of both quantity and value
b) Production budget
c) Material usage budget
d) Material purchases budget
e) Labour budget