Question
In: Accounting
XYZ Sdn Bhd is preparing budget for the year ended 31st December 2016. The company manufactures...
XYZ Sdn Bhd is preparing budget for the year ended 31st December 2016. The company manufactures and sellls one product at RM5 each but this will increase to RM6 from 1st July 2016. The budget sales volume are:
|
Units |
|
|
January to June |
9,000 |
|
July to December |
6,000 |
Sales for January to June 2017 is expected to be 12,000 units. Closing stocks is budgeted at 10% of the next six month period’s sales. No stocks of components are held.
Each unit of product uses two components with the usage current unit price as follows:
|
Usage |
Unit price |
|
|
Component A |
3 units |
RM10 |
|
Component B |
2 units |
RM6 |
Component A is expected to increase in price by 10% from July 2016. Labor cost for the product is RM30 per unit. Variable production overhead will be at RM10 per unit and fixed production overhead is budgeted at RM250,000 for the year.
Required:
Prepare the following budgets for XYZ Sdn Bhd for each of the two six-month periods of 2016.
(a) Sales budget. (1 mark)
(b) Production volume budget.
(c) Production cost budget.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
XYZ Sdn Bhd is preparing budget for the year ended 31st December 2016. The company manufactures...
XYZ Sdn Bhd is preparing budget for the year ended
31st December 2016. The company manufactures and sellls one product
at RM5 each but this will increase to RM6 from 1st July 2016. The
budget sales volume are:
Units
January to June 9,000
July to December 6,000
Sales for January to June 2017 is expected to be 12,000 units.
Closing stocks is budgeted at 10% of the next six month period’s
sales. No stocks of components are held.
Each unit...
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