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  • Qs Sol Budget

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    Pervaiz Akhter
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    1) The document summarizes production and sales figures for a company over four months. It includes opening and closing raw material and finished goods stocks as well as purchases, production, sales, and costs. 2) Total sales for the four months were Rs. 77,526. Production costs including raw materials and wages were Rs. 35,570. 3) Closing stocks included Rs. 4725 in raw materials and Rs. 8910 in finished goods. Creditors in June were Rs. 3825 and debtors included May and June sales of Rs. 41,610. 4) A cash budget is provided showing receipts, payments, and closing balances for each month. Receipts included debt

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    Qs Sol budget (1)

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    1) The document summarizes production and sales figures for a company over four months. It includes opening and closing raw material and finished goods stocks as well as purchases, production, sales, and costs. 2) Total sales for the four months were Rs. 77,526. Production costs including raw materials and wages were Rs. 35,570. 3) Closing stocks included Rs. 4725 in raw materials and Rs. 8910 in finished goods. Creditors in June were Rs. 3825 and debtors included May and June sales of Rs. 41,610. 4) A cash budget is provided showing receipts, payments, and closing balances for each month. Receipts included debt

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    12 views2 pages

    Qs Sol Budget

    Uploaded by

    Pervaiz Akhter
    1) The document summarizes production and sales figures for a company over four months. It includes opening and closing raw material and finished goods stocks as well as purchases, production, sales, and costs. 2) Total sales for the four months were Rs. 77,526. Production costs including raw materials and wages were Rs. 35,570. 3) Closing stocks included Rs. 4725 in raw materials and Rs. 8910 in finished goods. Creditors in June were Rs. 3825 and debtors included May and June sales of Rs. 41,610. 4) A cash budget is provided showing receipts, payments, and closing balances for each month. Receipts included debt

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Answer 1

    (a) Raw materials:


    (Units) March April May June
    Opening stock (0.5 mark) 100 110 115 110
    Add: Purchases (0.5 mark) 80 80 85 85
    180 190 200 195
    Less: Used in production (01 mark) 70 75 90 90
    Closing stock (0.5 mark) 110 115 110 105
    (Units) Finished production:
    Opening stock (0.5 mark) 110 100 91 85
    Add: Production (0.5 mark) 70 75 90 90
    180 175 181 175
    Less: Sales (0.5 mark) 80 84 96 94
    Closing stock (01 mark) 100 91 85 81

    (b) Sales:

    Total
    (at Rs. 219 per unit) Rs. 17520 Rs. 18,396 Rs. 21,024 Rs. 20,586 Rs. 77,526 (03 marks)
    Production cost: (01 mark) (01 mark) (0.5 mark) (0.5 mark)
    Raw materials 3,024 (1) 3,321 (2) 4,050 4,050 14,445
    (using FIFO) (0.5 mark) (0.5 mark) (0.5 mark) (0.5 mark) (02 marks)
    Wages and vanable
    Costs 4,550 4,875 5,850 5,850 21,125
    Rs. 7,574 Rs. 8.196 Rs. 9,900 Rs, 9,900 Rs, 35,570

    Debtors:
    Clsoing debtors = May + June sales = Rs. 41,610
    Creditors:
    June purchases 85 units x Rs. 45 Rs. 3825

    Note:
    (1) 70 units x Rs. 4320/100 units = Rs. 3024
    (2) 30 units x Rs. 4320 / 100 units + (45 units x Rs. 45) = Rs. 3321.

    Closing stocks:
    Raw materials 105 units x Rs. 45 Rs. 4725
    Finished goods 81 units x Rs. 110 Rs. 8910

    Note:
    “Materials (Rs. 45) + Labour and Vanable Overhead (Rs. 65).
    It is assumed that stock are valued on a variable costing basis.

    (c) Cash budget:


    March (Rs.) April (Rs.) May (Rs.) June (Rs.)
    Balance b/fwd 6790 4820 5545 132415
    Add: Receipts
    Debtors (two months credite) (01 mark) 7680 10400 17520 18396
    Loan -- -- 1200000 --
    (0.5 mark) (A) 14470 15220 143065 150811
    Payments:
    Creditors (one month’s credit) (01 mark) 3900 3600 3600 3825
    (80 x Rs. 45)
    Wages and variable overheads (01 mark) 4550 4875 5850 5850
    Fixed overheads (01 mark) 1200 1200 1200 1200
    Machinery -- -- -- 112000
    Interim dividend -- -- -- 12500
    (0.5 mark) (B) 9650 9675 10650 135375
    Balance c/f (01 mark) (A)–(B) 4820 5545 132415 Rs. 15436

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