&

(Production Budget Production Cost Budget)

of Anil Tools Ltd. for the
19. The following information has been made available from the records X
last siy

months of 2018 in respect of Product X

a) The units to be sold in different months are:
July 1,100
August 1,100
September 1,700
October 1,900
November 2,500
December 2,300
January 2,000
There will be no work-in-progress end of any month.
at the
b)
units equal to half of sales for the next month will be in stock at the end of every
month
c)
c) Finished

(including June).
Production and Production Cost for the year ending 31st December, 2018 are as thus:
d) Budgeted
Production (units) 22,000
10.00
Direct Material per unit
4.00
Direct Wages per unit
Total Factory Overheads apportioned to product 88,000

Prepare
i) a Production budget for each of the last six months of 2018.
ii)
a summarised production cost budget for the same period.
llustration 15 (Production /Consumption / Purchase Budget)
the last six months
VIvekManufacturing Company estimates sale of its product "Chemical R" during
of 2014 as under:

Months Units Months Units

July 18,000 October 28,800

August 26,500 November 24,000
September 30,400 December 22,000
is to be equal to 40% of sales estimate
Inventory of product "Chemical R" at the end of every month
for the next month. Closing inventory to June was maintained on the above basis. There
was no
of product "Chemical R" requires two types of
work-in-progress at the end of any month. Every unit
materials in the following quantities:

Material P =7 Itr. Material Q =8

=
Itr.

are kept as closing

Materials equal to 20% of the requirement for the next month's consumption
stock. The stock position on 30th June, 2014 was as under:
Material P 29,960 Itrs. Material Q 34,240 ltrs. =
The purchase price of Material P was estimated at 4 per Itr. and that of Material Q was estimated

at 5 per Itr. from the above, prepare following:

for July 2014 to November 2014.
(1) Production Budget
Budgetfor July 2014 to November 2014.
(2) Materials Consumption
showing Quantity and Value for July 2014 to October 2014
(3) Purchase Budget
(M.Com.. April 08, adapted)