SALES BUDGET

Quarte Quarte Quarte Quarte

r1 r2 r3 r4

Units sold
(Budgete
d) 8000 10000 12000 11000

x Selling
Price Per
Unit x 20 x 20 x 20 x 20

Total $ $ $ $
Sales 160,00 200,00 240,00 220,00
(in $) 0 0 0 0
PRODUCTION BUDGET

Quarter Quarter Quarter Quarter

1 2 3 4

Units sold
(Budgeted) 8000 10000 12000 11000

add: Desired ending

inventory (finished
goods) 1500 1800 1650 2250
(15% x next
quarters
budgeted
sales in units)
Total
Needs (in
units) 9500 11800 13650 13250
less: Beginning
inventory (finished
goods) 2000 1500 1800 1650

Total Units to
be produced 7500 10300 11850 11600
 DIRECT MATERIAL PURCHASE BUDGET
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Units to be
Produced 7000 8000 6000 5000
x material needed
per unit (kg per
unit) x2 x2 x2 x2
Direct (raw)
material needed
to meet
production (kg) 14000 16000 12000 10000
add: Desired
Ending inventory 1600 1200
(raw) (in kg) 1000 1500
Total Raw
Material Need (in
kg) 15600 17200 13000 11500
less: Beginning
Inventory (raw) 1400 1600 1200 1000
Total Direct (raw)
to be Purchased
(in kg) 14200 15600 11800 10500
x rate per kg x 1.40 x 1.40 x 1.40 x 1.40
Purchase (in $)
Direct Material
Cost $ 19,880 $ 21,840 $ 16,520 $ 14,700

DIRECT LABOUR BUDGET

Quarter Quarte Quarte Quarte
1 r2 r3 r4

Units to be Produced 7000 8000 6000 5000

x # of hours needed to complete 1
unit x 0.60 x 0.60 x 0.60 x 0.60
Direct Labour Hours needed to 4200 4800 3600 3000
complete production
x hourly rate paid to the workers
(in $) x 14 x 14 x 14 x 14
$ $ $ $
Total Direct Labout Cost 58,800 67,200 50,400 42,000