1 Florence Ltd manufactures Romas. The following information is available for the next budget...
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1 Florence Ltd manufactures Romas. The following information is available for the next budget year: Forecast Sales 7,000 Romas Per Roma Sales price 30 Raw Materials 2 kg @ 3.00 per kg Direct Labour 30 minutes @ 14 per hour Variable Production Overhead 8 per direct labour hour Budgeted Fixed Overhead Production 24,000 Non-Production 32,000 Stocks of Romas valued at production cost 20 Opening Stocks 1,000 Romas Budgeted Closing Stock 2,000 Romas No stocks of raw materials are carried (a) Prepare the following budgets for the year (i) Sales (ii) Production in units and (iii) Raw Material Usage (iv) Direct Labour (v) Overhead (b) Prepare a Budgeted Profit Statement for the year. (c) Explain how the production cost of 20 has been calculated.
1 Florence Ltd manufactures Romas. The following information is available for the next budget year:
Forecast Sales 7,000 Romas
Per Roma
Sales price 30
Raw Materials 2 kg @ 3.00 per kg
Direct Labour 30 minutes @ 14 per hour
Variable Production Overhead 8 per direct labour hour
Budgeted Fixed Overhead
Production 24,000
Non-Production 32,000
Stocks of Romas valued at production cost 20
Opening Stocks 1,000 Romas
Budgeted Closing Stock 2,000 Romas
No stocks of raw materials are carried
(a) Prepare the following budgets for the year
(i) Sales
(ii) Production in units and
(iii) Raw Material Usage
(iv) Direct Labour
(v) Overhead
(b) Prepare a Budgeted Profit Statement for the year.
(c) Explain how the production cost of 20 has been calculated.
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