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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
Product Z
1
Cost per unit of material
RO 5
RO 3
RO 4
Finished stocks budget
Opening
500
800
700
Closing
600
1,000
Raw material stocks budget
21,000
10,000
16,000
18,000
9,000
12,000
Expected hours per unit
4
6
8
Expected hourly rate (labour)
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
Classification of source of finances
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