BAF 2202-MANAGEMENT ACCOUNTING CAT 1&2 ANSWER ALL QUESTIONS QUESTION 1 The following information has been assembled...

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BAF 2202-MANAGEMENT ACCOUNTING CAT 1&2 ANSWER ALL QUESTIONS QUESTION 1 The following information has been assembled by Sancross Products Ltd which manufactures and retails products A and B. The details given below relate to the year commencing 1 July 2000: Direct material - M1 M2 Direct labour-L1 L2 Standard Price per kg Sh 4 Sh 5 Standard Rate per hour Sh 8 1 July 2000 30 June 2001 A hours 20 A Sh '000' 3,000 5,000 22 Product A kg 15 14 Direct material stocks valued at standard prices are as follows: Product Sh 10 24 Fixed production overhead is applied on direct labour basis. Administration, selling and distribution expenses are recovered at the rate of 20% of production cost and profit loaded at 25% of standard production cost. Product B Sh '000' Sh '000' 12,033 Projected sales for the year 10,053 Finished goods stock position valued at production cost is expected to be as follows: Product B hours 15 B 9 20 Sh '000' 2,000 4,000 12 a) Production budget in units. b) Direct materials cost budget. c) Purchases budget in value. d) Direct labour cost budget. M1 QUE Sh '000' 200 1 July 2000 30 June 2001 270 For the year to 30 June 2001, fixed production overhead has been estimated at Sh 1,800,000 and direct labour at 1,200,000 hours. No opening or closing work-in-progress is anticipated. Required: Material 220 M2 Sh '000 250 BAF 2202-MANAGEMENT ACCOUNTING CAT 1&2 ANSWER ALL QUESTIONS QUESTION 1 The following information has been assembled by Sancross Products Ltd which manufactures and retails products A and B. The details given below relate to the year commencing 1 July 2000: Direct material - M1 M2 Direct labour-L1 L2 Standard Price per kg Sh 4 Sh 5 Standard Rate per hour Sh 8 1 July 2000 30 June 2001 A hours 20 A Sh '000' 3,000 5,000 22 Product A kg 15 14 Direct material stocks valued at standard prices are as follows: Product Sh 10 24 Fixed production overhead is applied on direct labour basis. Administration, selling and distribution expenses are recovered at the rate of 20% of production cost and profit loaded at 25% of standard production cost. Product B Sh '000' Sh '000' 12,033 Projected sales for the year 10,053 Finished goods stock position valued at production cost is expected to be as follows: Product B hours 15 B 9 20 Sh '000' 2,000 4,000 12 a) Production budget in units. b) Direct materials cost budget. c) Purchases budget in value. d) Direct labour cost budget. M1 QUE Sh '000' 200 1 July 2000 30 June 2001 270 For the year to 30 June 2001, fixed production overhead has been estimated at Sh 1,800,000 and direct labour at 1,200,000 hours. No opening or closing work-in-progress is anticipated. Required: Material 220 M2 Sh '000 250 BAF 2202-MANAGEMENT ACCOUNTING CAT 1&2 ANSWER ALL QUESTIONS QUESTION 1 The following information has been assembled by Sancross Products Ltd which manufactures and retails products A and B. The details given below relate to the year commencing 1 July 2000: Direct material - M1 M2 Direct labour-L1 L2 Standard Price per kg Sh 4 Sh 5 Standard Rate per hour Sh 8 1 July 2000 30 June 2001 A hours 20 A Sh '000' 3,000 5,000 22 Product A kg 15 14 Direct material stocks valued at standard prices are as follows: Product Sh 10 24 Fixed production overhead is applied on direct labour basis. Administration, selling and distribution expenses are recovered at the rate of 20% of production cost and profit loaded at 25% of standard production cost. Product B Sh '000' Sh '000' 12,033 Projected sales for the year 10,053 Finished goods stock position valued at production cost is expected to be as follows: Product B hours 15 B 9 20 Sh '000' 2,000 4,000 12 a) Production budget in units. b) Direct materials cost budget. c) Purchases budget in value. d) Direct labour cost budget. M1 QUE Sh '000' 200 1 July 2000 30 June 2001 270 For the year to 30 June 2001, fixed production overhead has been estimated at Sh 1,800,000 and direct labour at 1,200,000 hours. No opening or closing work-in-progress is anticipated. Required: Material 220 M2 Sh '000 250 BAF 2202-MANAGEMENT ACCOUNTING CAT 1&2 ANSWER ALL QUESTIONS QUESTION 1 The following information has been assembled by Sancross Products Ltd which manufactures and retails products A and B. The details given below relate to the year commencing 1 July 2000: Direct material - M1 M2 Direct labour-L1 L2 Standard Price per kg Sh 4 Sh 5 Standard Rate per hour Sh 8 1 July 2000 30 June 2001 A hours 20 A Sh '000' 3,000 5,000 22 Product A kg 15 14 Direct material stocks valued at standard prices are as follows: Product Sh 10 24 Fixed production overhead is applied on direct labour basis. Administration, selling and distribution expenses are recovered at the rate of 20% of production cost and profit loaded at 25% of standard production cost. Product B Sh '000' Sh '000' 12,033 Projected sales for the year 10,053 Finished goods stock position valued at production cost is expected to be as follows: Product B hours 15 B 9 20 Sh '000' 2,000 4,000 12 a) Production budget in units. b) Direct materials cost budget. c) Purchases budget in value. d) Direct labour cost budget. M1 QUE Sh '000' 200 1 July 2000 30 June 2001 270 For the year to 30 June 2001, fixed production overhead has been estimated at Sh 1,800,000 and direct labour at 1,200,000 hours. No opening or closing work-in-progress is anticipated. Required: Material 220 M2 Sh '000 250

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It looks like you are tasked with developing various budgets for a company called Sancross Products Ltd Lets address each of the requirements stepbystep based on the provided data a Production budget ... View the full answer