Smart Manufacturers As a result of the COVID pandemic Smart Manufacturers has identified an opportunity where the
Question:
Smart Manufacturers
As a result of the COVID pandemic Smart Manufacturers has identified an opportunity where the company produces sanitizing hand towels mainly for the healthcare industry.
Actual information for the year ended July :
Sales for the year amounted to at R per towel.
towels were manufactured during the year.
Direct materials consumed was cm per towel.
Direct material was purchased at R per meter.
Direct labour amounted to hours at R per hour.
Manufacturing overheads were R
Closing inventory on July : Direct material, meters.
Finished products, hand towels Budgeted information for year ended July :
Expected increases: Hand towel sales will increase by The selling price will increase by
Manufacturing overheads will increase by
Direct material will be consumed at the same amount and price.
According to a new labour agreement, direct labour will be R per hour.
Production time will be less than the financial year.
Closing inventory on July : Direct material, meters.
Finished products, hand towels
Source: Waka, L
Prepare the following budgets for Smart Manufacturers for the year ending July :
a
Sales budget Marks
b
Production budget Marks
c
Direct material usage budget Marks
d
Direct material purchases budget Marks
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I