Excel Assignement 2 - Question 11.

31
Using formula : (Budgeted production or purchases) = (Target ending inventory) + (Budgeted
Inventory)

1) Cottesloe Company
Revenue Budget for 2019
Units Price ($)
Thingone 60,000 165
Thingtwo 40000 250
Budgeted revenues

2) Cottesloe Company
Production Budget (in units) for 2019
Thingone
Budgeted sales in units 60000
Add: Target finished goods inventories (31st Dec., 2019) 25000
Total requirements 85000
Less: Finished goods inventories (1st Jan., 2019) 20000
Units to be produced: 65000

3) Cottesloe Company
Direct Materials Purchases Budget (in qty.) for 2019
A B
Direct materials to be used in production:
Thingone (budgeted production of 65,000 units
260000 130000
times 4 kgs. of A, 2 kgs. of B)
Thingtwo (budgeted production of 41,000
205000 123000
units times 5 kgs. of A, 3 kgs. of B, 1 unit of C)
Total 465000 253000
Add: Target ending inventories (31st Dec 2019) 36000 32000
Total requirements in units 501000 285000
Less: Beginning inventories (1st Jan 2019) 32000 29000
Direct Materials to be Purchased (in units): 469000 256000

4) Cottesloe Company
Direct Materials Purchases Budget ($) for 2019
 Budgeted Expected
Purchases Purchase Price
(Units) per Unit

Direct Material A 469000 12

Direct Material B 256000 5
Direct Material C 42000 3
Budgeted Purchases

5) Cottesloe Company
Direct Manufacturing Labour Budget ($) for 2019

Direct
Budgeted
Manufacturing
Production
Labour Hours
(Units)
per Unit

Thingone 65000 2
Thingtwo 41000 3
Total

6) Cottesloe Company
Budgeted Finished Goods Inventory
for the year ended 31st December, 2019
($) ($)
Thingone:
Direct materials costs:
A: 4kg x $12 48
B: 2kg x $5 10 58
Direct manufacturing labour costs (2hrs x $12) 24
Manufacturing o/h costs @ $20 per direct
40
manufacturing labour hour (2hrs x $20)
Budgeted manufacturing costs per unit 122
Finished goods inventory of Thingone ($122 x
25000 units)

Thingtwo:
Direct materials costs:
A: 5kg x $12 60
B: 3kg x $5 15
C: 1 x $3 3 78
 Direct manufacturing labour costs (3hrs x $16) 48
Manufacturing o/h costs @ $20 per direct
60
manufacturing labour hour (3hrs x $20)
Budgeted manufacturing costs per unit 186
Finished goods inventory of Thingone ($186 x 9000
units)

Budgeted finished goods inventory, 31st Dec., 2019:

2 - Question 11.31
ding inventory) + (Budgeted sales or materials used)- (Beginning
ory)

Total ($)
9900000
10000000
19900000

Thingtwo
40000
9000
49000
8000
41000

9
C

41000

41000
7000
48000
6000
42000
 Total ($)

5628000
1280000
126000
7034000

y
dget ($) for 2019

Rate per Hour

Total Hours Total ($)
($)

130000 12 1560000
123000 16 1968000
3528000

($)

3050000
1674000

4724000