ASSIGNMENT $3$

DATE: $30\backslash (\{\}^\{\backslash$text $\{$th $\}\}\backslash )$ October $2024.$

INSTRUCTIONS:

$-$ You should hand$-$write$/$type your solutions, scan into $.$pdf format.

$-$ The deadline date is: Saturday, $23$rd November $2024$ at or before $9\mathrm{.}00$ p$.$m

$-$ This is a group assignment, name and registration numbers of group members should be included in the document.

$-$ No late submission will be marked

$-$ All submissions should be done on Moodle. No email submission will be accepted.

Question One

A small manufacturing firm produces one product. The budgeted sales for the month of January $2023$ are for $10,000$ units as a selling price of Sh$.2,000$ per unit. Other details are as follows;

$1.$ Two components of input are used in the production of one unit of output.

$2.$ Stocks at the beginning of the month are budgeted as follows; $4000$ units of finished goods at a unit cost of sh$.1,050$ per unit. Component X: $16,000$ units at a cost of Sh$.20.$

Component W: $9,600$ units at a cost of Sh$.10.$

$3.$ Production of each unit requires the following labour hours.

$4.$ Factory overhead is absorbed into units cost on the basis of direct labour hours. The budgeted factory overhead for the month is Sh$.1,920,000.$

$5.$ The administration, selling and distribution overhead for the month is budgeted at Sh$\mathrm{.}5,500,000.$

$6.$ The company plans a reduction of $\backslash (50\backslash \%\backslash )$ in quantity of finished stock at the end of the month and an increase of $\backslash (30\backslash \%\backslash )$ in the quantity of each input component.

Required:

a$)$ For the month of January $2023$

i$.$ Preduction quantity budget

ii$.$ Materials quantity and purchase budget $(4$ marks$)$

iii. Direct Labor budget $(3$ marks$)$

b$)$ The budgeted profit and loss account $(5$ marks$)$

Question Two $(15$ Marks$)$

The following table shows the deseasonalized sales of new cars made by DT Dobie in the years $2021$ to $2023.$