From the following information, prepare the following Budgets for the year 2009: (a) Production…


Question Description:

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From the following information, prepare the following Budgets for the year 2009: (a) Production Budget; (b) Material usage Budget; and (c) Material purchase Budget. Product (units) Product (units) Product (units) Sales P Q R Sales 10,000 20,000 15,000 Finished Stock on I January 2009 2,000 6,000 5,000 Finished Stock on 31 December 2009 7,000 1,000 10,000 Matenals used in Production Matenals used in Production Matenals used in Production S1 S2 S3 Stock of Materials on 1 January 2009 (kg) 20,000 50,000 20,000 Stock of Materials on 31 December 2009 (kg) 60,000 35,000 55,000 Quantities used in (kg): Product P 3 Product Q 7 8 4 Product R 3 6 9 Rate of Matenals per kg (Rs.) 5 4 6

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