3a) Production Budget

Wonderland limited (‘WLL)

Production Budget
For the Period of July 2023 - September 2023
Month
Particulars Quarter
July August September
Expected Sales (SLs) 3,600 4,200 2,400 10,200
Plus: Desired Ending Inventory (SLs) (40% of Next Month's Sales) 1,680 960 1,200 1,200
Less: Desired Beginning Inventory (SLs) 1,440 1,680 960 1,440
Required Production (SLs) 3,840 3,480 2,640 9,960
 
3b) Direct Material Purchase Budget

Wonderland limited (‘WLL)

Direct Materials Purchase Budget
For the Period of July 2023 - September 2023
Month
Particulars Quarter
July August September
Required Production (SLs) 3,840 3,480 2,640 9,960
(×) Direct Materials Per Unit (1 PV Cell per SL) 1.00 1.00 1.00 1.00
Total Direct Materials Required for Production (PVs) 3,840 3,480 2,640 9,960
Plus: Desired Ending Inventory (PVs) (50% of Next Month's Usage) 1,740 1,320 8,400 8,400
Less: Desired Beginning Inventory (PVs) 1,920 1,740 1,320 1,920
Required Purchase of PVs 3,660 3,060 9,720 16,440
Per PV Cost 8.50 8.50 8.50 8.50
Cost of Required Purchased of PVs $ 31,110 $ 26,010 $ 82,620 $ 139,740

* Ending Desired Inventory (PVs) in September = [3000+16800-1200)*1]*50%