The PQ company has budgeted sales for 100,000 units of its product for 2019. Expected unit costs, based on past experience, is estimated to be Sh 60 for direct materials, Sh 40 for direct labour, and Sh 30 for production overheads. Assume no opening or closing stocks in process. PQ begins the year with 40,000 finished units on hand but budgets the closing finished goods inventory at only 10,000 units.

Required: Compute the budgeted production costs for 2019.

Hint: Budgeted material costs = budgeted production units × material cost per unit

Budgeted labour costs = budgeted production units × labour cost per unit

Budgeted production overhead costs = budgeted production units × overhead cost per unit

Prepare your budget in good format.

Answer rating: 100% (QA)

Solution Budgeted Production Costs for 2019 1 Budgeted Material Costs Budgeted production units 1000... View the full answer