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Tutorial Activity Week 7

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Richard Midgley
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6 views1 page

Tutorial Activity Week 7

Uploaded by

Richard Midgley
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tutorial Activity-week7

You are required to prepare from the following information

(A) Manufacturing Budget


(B) Direct Material Budget
(C) Cash Disbursement Budget

Quarter 1 Quarter 2 Quarter3 Quarter4


Budgeted unit sale 10,000 9,000 8,000 7,000

The desired ending inventory is 20% of the next quarters budgeted sales and for the 4th quarter is 1500
units. The beginning inventory is 1600 units (1st quarter).

Raw Material per unit = 3 Kg Desired ending inventory for each quarter is 15% of the following quarter
manufacturing needs & the desired ending inventory for 4thquarter is 2,240 kilogram. The opening
inventory for first quarter is 2000 kg & the Cost of raw material to be purchased $2 per unit.

Accounts Payable at the beginning of the quarter 1 were $14,[Link] company is planning to pay 60%
of the raw material in the quarter acquired and rest(40%) in the following quarter

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