Budgeted manufacturing overheads
Inventories of materials
Inventories of finished goods
REQUIRED
You are the financial accountant at the company and the Chief Financial Officer has asked you to prepare the
following to be tabled at the finance budgetary committee:
Using the information provided above, compile the following for Meranti Limited:
Sales budget indicating total sales per province, per product and overall total.
Production budget in units
Direct materials purchases budget
Direct labour budget
Manufacturing overheads budget indicating the manufacturing overheads per department.QUESTION ONE
MARKS
INFORMATION
Meranti Limited manufactures and sells chairs and made the following forecasts for the financial year ending December
for the three provinces in which it operates:
Sales forecasts:
Materials quantity requirements and unit costs:
Labour requirements and hourly rates
Budgeted manufacturing overheads
