Herma Ltd. produces specialized professional camera bag. The main materials for the bag are canvas and...

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Herma Ltd. produces specialized professional camera bag. The main materials for the bag are canvas and leather. The company is preparing detailed budget for April 2022 and has assembled the following information to assists in the budget preparation: $1,500 Selling price Estimated sales quantity March 40,000 40,000 April May 45,000 June 58,000 Direct Materials (Leather): Standard material per bag 0.8 m of leather $ 1,090 per m of leather Material price Direct Labour: Standard labour per bag 7 hours S 25 Direct labour cost per hour Manufacturing Overhead: S 48 per m of leather purchased S 8 per direct labour hour Purchasing and material handling General production overhead Non Manufacturing Expenses Variable Marketing Expenses $ 45 per unit sold $ 1,780,000 Fixed Marketing Expenses General and Administration $ 2,918,000 Expense Following are the policy related to the operation: a. The company maintains finished goods inventory equal to 12% of the following month's sales. b. The company requires that the ending inventory of direct materials be equal to 15% of the following month's production needs. In March 2022, Herma Ltd. identified that the cost per unit of production is $1,025. Required: Prepare the following budget for April 2022: 1. Revenue budget (in dollar) (2%) 2. Production budget (in units) (2%) 3. Direct material usage budget (in quantities and in dollar) (2%) 4. Direct material purchase budget (in quantities and in dollar) (4%) 5. Direct labour budget (in dollar) (2%) 6. Manufacturing overhead budget (in dollar) (2%) 7. Budgeted Unit Cost of Ending Finished Good Inventory (4%) 8. Ending Inventory Budget (2%) 9. COGS Budget (2%) 10. Income Statement Budget (3%) Herma Ltd. produces specialized professional camera bag. The main materials for the bag are canvas and leather. The company is preparing detailed budget for April 2022 and has assembled the following information to assists in the budget preparation: $1,500 Selling price Estimated sales quantity March 40,000 40,000 April May 45,000 June 58,000 Direct Materials (Leather): Standard material per bag 0.8 m of leather $ 1,090 per m of leather Material price Direct Labour: Standard labour per bag 7 hours S 25 Direct labour cost per hour Manufacturing Overhead: S 48 per m of leather purchased S 8 per direct labour hour Purchasing and material handling General production overhead Non Manufacturing Expenses Variable Marketing Expenses $ 45 per unit sold $ 1,780,000 Fixed Marketing Expenses General and Administration $ 2,918,000 Expense Following are the policy related to the operation: a. The company maintains finished goods inventory equal to 12% of the following month's sales. b. The company requires that the ending inventory of direct materials be equal to 15% of the following month's production needs. In March 2022, Herma Ltd. identified that the cost per unit of production is $1,025. Required: Prepare the following budget for April 2022: 1. Revenue budget (in dollar) (2%) 2. Production budget (in units) (2%) 3. Direct material usage budget (in quantities and in dollar) (2%) 4. Direct material purchase budget (in quantities and in dollar) (4%) 5. Direct labour budget (in dollar) (2%) 6. Manufacturing overhead budget (in dollar) (2%) 7. Budgeted Unit Cost of Ending Finished Good Inventory (4%) 8. Ending Inventory Budget (2%) 9. COGS Budget (2%) 10. Income Statement Budget (3%)

Answer rating: 100% (QA)

Herma Ltd Answer 1 Amount Note Sales units in April 4000000 A Sell price 150000 B Revenue Budget 6000000000 CAB Answer 2 April May June Note Sales uni... View the full answer