prepare a production budget, Managerial Accounting

Mosman Ltd makes a single product. The projected sales for the first month of the coming year and the starting and ending inventory data are as follows:
 
Sales  80,000 units
Unit price  $12
Beginning inventory  6,000 units
Desired ending inventory  9,000 units
 
Every unit needs three kilograms of material costing $2 per kilogram. The beginning inventory of raw materials is 2,500 kilograms, and the company wants to have 4,500 kilograms of material in inventory at the end of the month. Each unit needs one hour of direct labour time, which is billed at $8 per hour.
 
Required:
 

(A) Prepare a production budget for the first month.                                 
  
(B) Prepare a direct materials purchases budget for the first month in kilograms and dollars.                                                                                                  
  
(C) With which estimate does budgeting start? Describe why this is so and give examples to illustrate your understanding.

Posted Date: 3/16/2013 6:11:42 AM | Location : United States







Related Discussions:- prepare a production budget, Assignment Help, Ask Question on prepare a production budget, Get Answer, Expert's Help, prepare a production budget Discussions

Write discussion on prepare a production budget
Your posts are moderated
Related Questions
How much would each be required to contribute to the QPP in 2011 based on their $70,000 salaries?   Please show your calculations. How much pension income would each have receiv

Material storage Sophisticated mathematical models to control economic buying, and systems control the flow of material may all be for naught if the obvious-efficient storekeep

Analysis of Financial Ratios: Ratios are computed to find out the customer's liquidity position and capability to repay debts. The computed ratios must be compared along with the

VALUE CHAIN ANALYSIS Every firm is a collection of activities that are executed to design, generate, market, deliver and support its products or services. Value chain analysis

Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion

a cost-allocation base may be any of the following except: a. cost driver b. cost pool c. way to link indirect cost to a cost object d. nonfinancial quantity

Explain Ranking of decision packages - zero base budgeting Ranking of decision packages: by ranking the decision packages a company will be able to weed out a lot of marginal e

Viti Ltd, located in southern Viti Levu, manufactures a variety of industrial valves and pipe fittings that are sold to customers in the eastern states. Currently, the company is o

Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o

State performance budgeting according to carter performance According to carter performance budgets use statement of mission goals and objectives to explain why the money is be