The following information has been made available from the records of Bits and Great Nigeria Limited for
Question:
The following information has been made available from the records of Bits and Great Nigeria Limited for the six months of 2000 (and of only the sales of January 2001) in respect of product X
(i) Units to be sold in different months are
July 2000 ......1100
August 2000.....1100
September 2000......1700
October 2000........1900
November 2000......2300
December 2000........2300
January 2001.........2000
(ii) There will be no work in process at the end of any month.
(iii) Finishing units which are equal to half sales of the next month will be in stock at the end of every month ( including June,2000)
(iv) Budgeting production and production cost for the year ended 31st 2000, are as follows
Production (Units) .........22000
Direct material per unit. .....N10
Direct wages per unit. ..........N4
Total factory overhead apportioned to production N88,000
You are required to prepare:
(a) A production budget for each of the six months of 2000, and
(b) A summarized production cost budget for the same period.
Expert Answer:
The detailed answer for the above question is provided below a Production budg... View the full answer
