Xavier Ltd manufactures Product Z. The following information is an extract and relates to the budget...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Xavier Ltd manufactures Product Z. The following information is an extract and relates to the budget for the year to 31 December 2023. 20,000 units of Product Z are expected to be sold at £1,000 per unit. On 1 January 2023, 2,000 units are expected be in inventory and there should be no closing inventory at the end of the year. Each unit produced requires 3,000 grams of material K purchased at £130 per kg. The target opening inventory is 25,000kg and closing inventory is 10,000kg. Two processes are involved in production, Process A and Process B, with direct labour rate of £5 and £14 per hour respectively. Two direct labour hours are required in process A for each unit and one hour is required for each unit in process B. The management of Xavier Ltd have heard of beyond budgeting but do not fully understand it. a. Prepare the direct materials purchase budget for the year ended 31 December 2023. [3 marks] b. Prepare the direct labour cost budget for the year ended 31 December 2023. [2 marks] c. In no more than 400 words, critically discuss the limitations of traditional budgeting and suggest alternative methods to address the limitations identified. [20 marks] Xavier Ltd manufactures Product Z. The following information is an extract and relates to the budget for the year to 31 December 2023. 20,000 units of Product Z are expected to be sold at £1,000 per unit. On 1 January 2023, 2,000 units are expected be in inventory and there should be no closing inventory at the end of the year. Each unit produced requires 3,000 grams of material K purchased at £130 per kg. The target opening inventory is 25,000kg and closing inventory is 10,000kg. Two processes are involved in production, Process A and Process B, with direct labour rate of £5 and £14 per hour respectively. Two direct labour hours are required in process A for each unit and one hour is required for each unit in process B. The management of Xavier Ltd have heard of beyond budgeting but do not fully understand it. a. Prepare the direct materials purchase budget for the year ended 31 December 2023. [3 marks] b. Prepare the direct labour cost budget for the year ended 31 December 2023. [2 marks] c. In no more than 400 words, critically discuss the limitations of traditional budgeting and suggest alternative methods to address the limitations identified. [20 marks]
Expert Answer:
Answer rating: 100% (QA)
aDirect materials purchase budget For the year ended 31 December 2023 20000 units of product Z f1000 ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
The following information relates to Meres budget for the year to 31 December 2018: The directors are worried about the loss that product M is budgeted to make and various suggestions have been made...
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
The following information is from White Mountain Furniture Showrooms financial records. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the...
-
A manufacturer claims that the average tensile strength of thread A exceeds the average tensile strength of thread B by at least 12 kilograms. To test his claim, 50 pieces of each type of thread are...
-
Assume there are initially 10 firms, each with a 10 percent market share. a. What is the initial HHI? b. What will the HHI become if two firms merge? c. What will the HHI become if three firms merge?
-
Derive the following relation, for the internal pressure of a gas that obeys the RedlichKwong equation of state, aU av /T 2TV, + b) || RT 1 V , + b)
-
Find the = 0.10 critical value for the chi-square distribution with 4 degrees of freedom.
-
A thin metallic wire of thermal conductivity k, diameter D, and length 2L is annealed by passing an electrical current through the wire to induce a uniform volumetric heat generation q. The ambient...
-
ANSWER ALL QUESTIONS 1a- Reading the research article by Al-Mutuairi and Saeid (2018) , answer the following questions: 1-Who is the most important source and decision maker for capital budgeting...
-
Assign latest poverty to a three-column table with one row for each country that appears in the poverty table. The first column should contain the 3-letter code for the country. The second column...
-
Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore's new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted...
-
What is throttling of steam ?
-
List the requirements of a good boiler.
-
What are the functions of boiler accessories ?
-
Hyperbolic process is also an isothermal process in the super heat region. Say true or false.
-
What are saturation states ?
-
In a laboratory test of the filtration of a cell culture, the following equation was obtained to describe the filtration. t = = K (~7) + K V/A Where K=0.18 min/cm and K= 0.017 min/cm. The cell slurry...
-
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
-
Halifax Products has a $1 million bank loan that comes due next year. Management has prepared cash flow forecasts for each of the next six quarters as shown in the table below. Planned capital...
-
The following information is based on a real company whose name has been disguised. Opus One operates in a single business segment, the retailing and servicing of home audio, car audio, and video...
-
Sonic Solutions develops digital media products, services, and technologies for consumers and content development professionals. In June 2010, a team of analysts at J.P. Morgan issued a research...
-
A wheel of radius \(r\) rolls on a flat surface without slipping. Determine the angular motion of the wheel in terms of the linear motion of its center \(O\). Also determine the acceleration of a...
-
The right-angle bar rotates clockwise with an angular velocity which is decreasing at the rate of \(4 \mathrm{rad} / \mathrm{s}^{2}\). Write the vector expressions for the velocity and acceleration...
-
The load \(L\) is being hoisted by the pulley-and-cable arrangement shown. Each cable is wrapped securely around its respective pulley so it does not slip. The two pulleys to which \(L\) is attached...
Study smarter with the SolutionInn App