Unicorn Trading manufactures bags. The company uses raw materials Leather and Lining to manufacture the bags....
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Unicorn Trading manufactures bags. The company uses raw materials Leather and Lining to manufacture the bags. With the following information provided, they have asked you to help them with their budgets: Projected sales 4 000 units @ R250 per unit Production requirements The standard material cost per bag is as follows: Leather: 3m = R20 per metre Lining: 2.5m= R18 per metre It takes 4 labour hours to produce one bag @ R7 per hour Manufacturing overheads Variable overheads are estimated at 10% of direct labour cost. Fixed overheads amount to R22000, and they are allocated based on total labour hours. Opening and closing inventory requirements Bags Leather Lining Opening inventory 400 bags 2 000 metres 1800 metres Closing Inventory 480 bags 2160 metres 2240 metres Required: Prepare the following budgets for Unicorn trading: 1. Sales budget 2. Production budget 3. Material Usage budget 4. Material Purchase Budget 5. Direct labour budget 6. Closing Stock Budget (round off your answer to 2 decimals). Unicorn Trading manufactures bags. The company uses raw materials Leather and Lining to manufacture the bags. With the following information provided, they have asked you to help them with their budgets: Projected sales 4 000 units @ R250 per unit Production requirements The standard material cost per bag is as follows: Leather: 3m = R20 per metre Lining: 2.5m= R18 per metre It takes 4 labour hours to produce one bag @ R7 per hour Manufacturing overheads Variable overheads are estimated at 10% of direct labour cost. Fixed overheads amount to R22000, and they are allocated based on total labour hours. Opening and closing inventory requirements Bags Leather Lining Opening inventory 400 bags 2 000 metres 1800 metres Closing Inventory 480 bags 2160 metres 2240 metres Required: Prepare the following budgets for Unicorn trading: 1. Sales budget 2. Production budget 3. Material Usage budget 4. Material Purchase Budget 5. Direct labour budget 6. Closing Stock Budget (round off your answer to 2 decimals).
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Lets prepare the budgets for Unicorn Trading step by step 1 Sales Budget Projected sales 4000 units Selling price per unit R250 per unit Sales Budget ... View the full answer
Related Book For
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke
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