Q. Prepare a production budget of Madras Ltd.

, for 2016-17 from the following

information.

Sales as per sales Estimated stock (in units)

Products
budget (in units)
01-07-2016 30-06-2017

A 1,80,000 15,000 19,000

B 1,60,000 24,000 27,000

C 2,70,500 26,500 28,000

D 2,10,000 8,000 20,000

SOLUTION

Madras Ltd.
Production Budget (2016-17)

A B C D
Particulars
Units Units Units Units

Estimated sales 1,80,000 1,60,000 2,70,500 2,10,000

Add: Stock to be maintained on

19,000 27,000 28,000 20,000
30-06-2017.

Total 1,99,000 1,87,000 2,98,500 2,30,000

Less: Estimated quantity of

15,000 24,000 26,500 8,000
opening stock.

Number of units to be produced 1,84,000 1,63,000 2,72,000 2,22,000