Cost and management accounting II assignment summit date April 30,

Serra Furniture is an Elite desk manufacture. It manufactures two products.

1. Executive desks – Oak desks
2. Chairman desks – Red Oak desks
The budgeted direct cost inputs for each production in 2020 are as follows:
Particulars Executive line Chairman line
Direct material:
Oak top 16Sqf -----
Red Oak top --- 25Sqf
Oak legs 4 legs ----
Red Oak legs -- 4 legs
Direct Labor: 3 Hr. 5 Hr.
Unit data pertaining to the direct materials for March 2020 as follows: Actual
beginning direct material’s inventory (2020)
Particulars Executive line Chairman Line
Oak top 320 Sqf -----
Red Oak top ----------- 150 Sqf
Oak legs 100 legs ----
Red Oak legs 40 legs
Target ending direct material inventory at March 31, 2020.
Particulars Executive line Chairman Line
Oak top 192Sqf
Red Oak top 200Sqf
Oak legs 80 legs
Red Oak legs 44 legs
Unit cost data for direct cost inputs pertaining to February 2020 and March 2020 are:
Particulars February 2020 March
2020
Oak top (per sqf) Bir.18.00 Bir.20.00
Red Oak top (per sqf) Bir.23.00 Bir.25.00
Oak top (per leg) Bir.11.00 Bir.12.00
Red oak legs (per leg) Bir.17.00 Bir.18.00
Manufacturing labor (per Hr) Bir.30.00 Bir.30.00
Manufacturing overhead (both variable and fixed) is allocated to each desk on the basis of
budgetary direct manufacturing labor hours per desk. The budgeting variable manufacturing
overhead rate for March 1998 is Bir.35.00 per Direct manufacturing labor Hour. The
budgeted fixed manufacturing overhead for March 1998 is Bir.42, 500. Both variable and
fixed manufacturing overhead cost is allocated to each unit of finished goods.
Data relating to finished goods inventory for March 20201 are
Particulars Executive line Chairman Line
Beginning inventory 20 units 5 units
Beginning inventory Bir.10, 480 Bir.4850
Target ending inventory 30 units’ 15 units
Budgeted sale for March 1998 are 740 units of the executive line and 390 units of the
chairman line. The budgeted selling prices per unit in March 2020 are Bir.1, 020 for
an executive line desk and Bir.1600 for a chairman line desk.
Take the following assumptions in your answer:
a) Works in Process inventories are negligible and ignored.
b) Direct material inventory and finished goods inventory are determined using the
FIFO method.
c) Unit costs of direct material purchased and finished goods are constant in March
2020 Required:
Prepare the following budget for March, 2020
1. Revenue budget
2. production budget in units
3. Direct material usage budget and direct material purchase budget
4. Direct manufacturing labor budget
5. Ending inventory budget
6. Cost of goods sold budget