Академический Документы
Профессиональный Документы
Культура Документы
Master Budget
Tutor: Siti Czafrani Pratiwi
Question I
Royal Company is preparing budgets for April, May, and June year 20x1
Budgeted sales of the companys only product for the next five months are:
April............
May.............
June.............
July..............
August.........
20,000 units
50,000 units
30,000 units
25,000 units
15,000 units
The company desires to have inventory on hand at the end of each month equal to 20% of the
following months budgeted unit sales.
Management desires to have materials on hand at the end of each month equal to 10% of the
raw materials needed for following months production.
Fixed manufacturing overhead is $50,500 per month. This includes $20,500 in depreciation,
which is not a cash outflow.
Royal Company uses variable costing in its budgeted income statement and balance sheet.
Variable selling and administrative expenses are $0.50 per unit sold.
Fixed selling and administrative expenses are $70,000 per month and include $10,000 in
depreciation.
Required:
1.
Sales budget.
2.
Production budget.
3.
4.
5.
6.
7.
Question 2
PT. ABC is a local t-shirt manufacturer. In 2012 management projected that they can sell 8000 units of
various types t-shirt. Data required to develop this years budget is as follows:
a. Finished goods inventory on January 1 is 100 units, each costing Rp15.000.
Management planned to maintain its current level of finished goods inventory at the
end of 2012.
b. Inputs include the following :
Fabric
Dye
Labor
Price
Rp 10.000 per meter
Rp 1.000 per ounce
Rp 10.000 per DLH
Quantity
1 meter per shirt
3 ounces per shirt
0.25 DLH per shirt
Inventory at Jan 1
75 meter at Rp9.000
100 ounces at Rp750
c. Overhead costs for 2012 are estimated for fixed and variable components:
(measured
in direct labor hour (DLH)). Overhead are allocated to finish product using direct
labor hour as the cost allocation base.
Supplies
Power
Maintenance
Supervision
Depreciation
Other
Required :
Prepare a partial annual operating budget for the year 2012 :
(1) Production Budget
(2) Direct Material Usage Budget
(3) Direct Labor Cost Budget
(4) Manufacturing Overhead Cost Budget
(5) Cost of Goods Sold Budget