Projected Sales, 2018 Inventories, Direct Material, And Labour Requirement

Projected Sales Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper

Product	Q1	Q2	Q3 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Q4
Azu	6000	7000	8000	9000
Ranna	5000	5500	6200	6800
Selling price per unit
Azu	$ 125	$ 125	$ 135	$ 135
Ranna	$ 160	$ 160	$ 170	$ 170


2018 Inventories in sales

Product	1st Jan 2018	31st Dec 2018
Azu	4000	5500
Ranna	3000	4500

Uses of Direct Material

	Amount used per unit
Direct Material	Unit Usage	Azu	Ranna
A	KG	4	5
B	KG	2	3
C	Each	0	1

Projected data of material

Direct Material	Anticipated pur price	Expected opening inventory	Target closing inventory
A	$ 8.00	23000	25500
B	$ 4.25	1900	1800
C	$ 2.80	4000	4600

Direct manufacturing labour requirement

Product	Hours per unit	Rate per hour
Azu	2.4	$ 14.55
Ranna	3.5	$ 16.75

Output sheet:

Sales budget:

Sales Budget
Product Azu	Reference calculations	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total	Marks
Sales		6000	7000	8000	9000	21000
Selling price		$ 125	$ 125	$ 135	$ 135	$ 385
Total sales for AZU	a	$ 750,000	$ 875,000	$ 1,080,000	$ 1,215,000	$ 2,705,000

Product Ranna
Sales		5000	5500	6200	6800	16700
Selling price		$ 160	$ 160	$ 170	$ 170	$ 490
Total sales for Ranna	b	$ 800,000	$ 880,000	$ 1,054,000	$ 1,156,000	$ 2,734,000

Total sales for both products		$ 1,550,000	$ 1,755,000	$ 2,134,000	$ 2,371,000	$ 5,439,000


Reference for calculations
a. 6000*125 = 7,50,000
b. 5000* $160 = $ 8,00,000
C. 7,50,000+8,00,000 = 15,50,000

Production budget:

Direct material purchase budget:

Direct Material purchase Budget (in KG)	Marks
		Direct Material
	Reference calculations	A	B	C
Product Azu
Production Units		22,500	22,500	22,500
Material Required for each Unit		4	2	–
Total material required	a	90,000	45,000	–

Product Ranna
Production Units		18,200	18,200	18,200
Material Required for each Unit		5	3	1
Total material required	b	91,000	54,600	18,200

Total material for both products	C	181,000	99,600	18,200

Add: Closing stock		25,500	1,800	4,600
Less: Opening stock		23,000	1,900	4,000
Total Material purchase	D	183,500	99,500	18,800

Reference for calculations
a. 22500*4 = 90,000
b. 18200*5 = 91,000
c. 90000+91000 = 1,81,000
d. 181000+25500-23000 = 1,83,500

Direct material purchase budget:

Direct Material purchase Budget (in dollar)	Marks
		Direct Material	Direct Material	Direct Material
		Anu	Anu	Total
	Reference calculations	A	B	C	A	B	C	A	B	C

Material purchase		90,000	45,000	–	91,000	54,600	18,200
Material price		$ 8.00	$ 4.25	$ 2.80	$ 8.00	$ 4.25	$ 2.80
Total material purcase amount ($)	a	$ 720,000	$ 191,250	$ –	$ 728,000	$ 232,050	$ 50,960	$ 1,448,000	$ 423,300	$ 50,960

Reference for calculations
a. 90000* 8 = $ 7,20,000

Direct manufacturing labour budget:

Direct manufacturing labour budget Budget (in dollar)	Marks

	Reference calculations
Product Azu
Production Units		22,500
Labour hour required for each unit	a	2.4
Total labour hour		54,000
Labour rate per hour		$ 14.55
Total labour cost	b	$ 785,700

Product Ranna
Production Units		18,200
Labour hour required for each unit		3.5
Total labour hour		63,700
Labour rate per hour		$ 16.75
Total labour cost		$ 1,066,975

Total labour hour for both products	c	$ 1,852,675

Reference for calculations
a. 22500*2.4 = 54,000
b. 54000 * 14.55 = 7,85,700
c. 785700 + 1066975 = 18,52,675

Budgeted finished goods inventory:

Budgted finished goods (in KG)			Marks
		Direct Material
	Reference calculations	A
Product Azu
Closing inventory (units)		5,500
Direct Material	a	$ 222,750
Direct Labour	b	$ 192,060
Value of closing stock unit	a	$ 414,810

Product Ranna
Closing inventory (units)		4,500
Direct Material		$ 249,975
Direct Labour		$ 263,813
Value of closing stock unit	b	$ 513,788
Value of closing stock unit
Total closing inventory price	c	$ 928,598

Reference for calculations
a. (550048)+(550024.25) = 2,22,750
b. 55002.414.5 = 1,92,060