Carpnell Pty Ltd

Budgeted Sales for the year

Products

Units

Expected Inventories at 1 January (in

units)

Expected Inventories at 31 December (in

units)

X
Y
Z

20000
50000
30000

8000
15000
6000

10000
15000
6000

Materials used in Manufacture

Amount Used Per Unit of Product
Unit of Measure
X
Y
Each
1
Each
2
1
Kilogram
2
Kilogram
3
Kilogram
5
-

Stock No.
A99
B50
TS43
TS32
TS48

Details of materials
Materials
A99
B50
TS43
TS32
TS48

Expected Purchase Price

$
$
$
$
$

Products
X
Y
Z
Factory overhead

6.00
4.00
5.00
8.00
7.50

Expected Inventories at 1 January

each
each
/kilogram
/kilogram
/kilogram

21000
17000
10000
18000
25000

Direct labour requirement and rates

Hours per Units
Rate per Hour ( $ )
$
4
$
5
$
5
$

4.00 /direct labour hour

All Inventories at 1 January are to be valued at the current years cost.

Answer :
a)
Carpnell Pty Ltd
Production Budget
for one year
Product
Sales
Closing stock
Total required
Opening stock
Production required

X
20000
10000
30000
8000
22000

Y
50000
15000
65000
15000
50000

8.00
9.00
8.20

Carpnell Pty Ltd

Budgeted cost of material
for one year
Cost of Direct Materials
A99
B50
TS43
TS32
TS48

132,000.00
176,000.00
$ 825,000.00
$ 1,133,000.00

$
$

$
$
$

200,000.00
500,000.00
1,200,000.00
-

1,900,000.00

Carpnell Pty Ltd

Cost of goods sold budget
for one year
Opening Stock
Cost of production
Closing stock
Cost of goods sold

$
$
$
$

X
700,000.00
$1,925,000.00
2,625,000.00
875,000.00
1,750,000.00

Y
$
$
$
$

1,305,000.00
$4,350,000.00
5,655,000.00
1,305,000.00
4,350,000.00

b)

Materials required
Closing stock
Total required
Opening stock
Purchase required
cost per item
Total cost of material purchases

A99
172,000
25000
197,000
21000
176,000
$
6.00
$ 1,056,000.00

Carpnell Pty Ltd

Materials purchases budget
for one year
B50
TS43
184,000
100,000
23000
15000
207,000
115,000
17000
10000
190,000
105,000
$
4.00 $
5.00
$
760,000.00 $ 525,000.00

y Ltd
Carpnell Pty Ltd
Expected Inventories at 31 December (in
units)
10000
15000
6000

Budgeted Cost of Labour

for one year
Product Required
Hours/unit
Rate
Total Cost of Labour

e
ount Used Per Unit of Product
Z
5
3
4

Budgeted Cost of Overhea

for one year
Product Required
Rate
Total Cost of Factory Overhead

erials

Carpnell Pty Ltd

Budgeted Cost of Productio
for one year

Expected Inventories at 31 December

25000
23000
15000
18000
30000

Total Cost of Material

Total Cost of Labour
Total Cost of Factory Overhead
Total Cost of Production

NB :
Cost per unit

Z
30000
6000
36000
6000
30000

Z
$
$

900,000.00
360,000.00

$
$

900,000.00
2,160,000.00

$
$
$
$

Z
702,000.00
$3,510,000.00
4,212,000.00
702,000.00
3,510,000.00

Ltd
es budget
ar
TS32

$
$

TS48
150,000
230,000
18000
30000
168,000
260,000
18000
25000
150,000
235,000
8.00 $
7.50
1,200,000.00 $ 1,762,500.00

Carpnell Pty Ltd

Budgeted Cost of Labour

for one year
X
Y
22000
50000
4
5
$8.00
$9.00
$704,000.00
$2,250,000.00
Budgeted Cost of Overhead
for one year
X
Y
22000
50000
$4.00
$4.00
$88,000.00
$200,000.00
Carpnell Pty Ltd
Budgeted Cost of Production
for one year
X
Y
$1,133,000.00
$1,900,000.00
$704,000.00
$2,250,000.00
$88,000.00
$200,000.00
$1,925,000.00
$4,350,000.00

X
$

Y
87.50 $

Z
30000
5
$8.20
$1,230,000.00

Z
30000
$4.00
$120,000.00

Z
$2,160,000.00
$1,230,000.00
$120,000.00
$3,510,000.00

Z
87.00 $

117.00

a. COGS

Deluxe
Sales
Closing stock
Total required
Opening stock
Production required

Trendifurn
Production Budget
For the quarter ended in September
July
August
September
400
510
500
255
250
260
655
760
760
200
255
250
455
505
510

Quarter
October
1410
520
260
250
1670
770
200
260
1470
510

Super Deluxe
Sales
Closing stock
Total required
Opening stock
Production required

Trendifurn
Production Budget
For the quarter ended in September
July
August
September
600
700
700
350
350
400
950
1050
1100
300
350
350
650
700
750

Quarter
October
2000
800
400
360
2400
1160
300
400
2100
760

Deluxe
Cost of Direct Material
Timber :
41 cm x 360 cm
35 cm x 350 cm
89 cm x 180 cm
45 cm x 119 cm
Cost of Material
Cost of Direct Labour
Cost of Overhead
Cost of Production

Deluxe
Opening Stock
Cost of production
Closing stock
Cost of goods sold

Trendifurn
Budgeted Cost of Production
For the quarter ended in September
July
August
September

$22,750
$21,012
$2,958
$9,024
$55,744
$4,550
$4,550
$64,844

$25,250
$23,321
$3,283
$10,016
$61,870
$5,050
$5,050
$71,970

$25,500
$23,552
$3,315
$10,115
$62,482
$5,100
$5,100
$72,682

Quarter

$73,500
$67,885
$9,555
$29,155
$180,095
$14,700
$14,700
$209,495

Trendifurn
Cost of Good Sold Budget
for the quarter ended in September
July
August
September
Quarter
$28,503
$36,341
$35,628
$28,503
$64,844
$71,970
$72,682
$209,495
$93,347
$108,311
$108,311
$237,998
$36,341
$35,628
$37,054
$37,054
$57,006
$72,682
$71,257
$200,945

b. Material Purchase Budget

July

Materials required
Closing stock
Total required
Opening stock
Purchase required
cost per item
cost of material purchase

Trendifurn
Materials purchases budget
for the quarter ended 30 September
Timber in cm
41 cm x 360 cm 35 cm x 350 cm 89 cm x 180 cm 45 cm x 119 cm Glass

$
$

397800
108450
506250
(99450)
406800
100 $
56,500 $

August
41 cm x 360 cm
Materials required
Closing stock
Total required
Opening stock
Purchase required
cost per item
cost of material purchase

$
$

41 cm x 360 cm
Materials required
Closing stock
Total required
Opening stock
Purchase required
cost per item
cost of material purchase

$
$

Total cost of material purchases

$
Quarter

198900
54225
253125
(49725)
203400
26 $
7,345 $

132600
1300
36150
350
168750
1650
(33150)
(325)
135600
1325
120 $
12
22,600 $ 15,900

Timber in cm
35 cm x 350 cm 89 cm x 180 cm 45 cm x 119 cm

433800
113400
547200
(108450)
438750
100 $
60,938 $

September

397800
108450
506250
(99450)
406800
95 $
53,675 $

433800
113400
547200
(108450)
438750
95 $
57,891 $

216900
56700
273600
(54225)
219375
26 $
7,922 $

Glass

144600
1400
37800
375
182400
1775
(36150)
(350)
146250
1425
120 $
12
24,375 $ 17,100

Timber in cm
35 cm x 350 cm 89 cm x 180 cm 45 cm x 119 cm

Glass

453600
114300
567900
(113400)
454500
100 $
63,125 $

453600
114300
567900
(113400)
454500
95 $
59,969 $

226800
114300
341100
(56700)
284400
26 $
10,270 $

151200
1500
114300
380
265500
1880
(37800)
(375)
227700
1505
120 $
12
37,950 $ 18,060

180,563 $

171,534 $

25,537 $

84,925 $ 51,060

Timber is usually purchased in

European Black Ash Veneer, Per length
41 cm wide
35 cm wide
45 cm wide

720

Pineboard for the back, per length

89 cm wide
Direct of labour cost
NB : each wall unit takes 1 hour
Deluxe
$143

Cost per unit

Super-deluxe
Cost of Direct Materials
Timber:
41 cm x 360 cm
35 cm x 350 cm
89 cm x 180 cm
45 cm x 119 cm
Glass
Handle
Cost of Production
Cost of Direct Labour
Cost of Overhead
Cost of Production

Super Deluxe
Opening Stock
Cost of production
Closing stock
Cost of goods sold

July

August

$32,500
$30,017
$4,225
$12,892
$15,600
$2,600
$97,834
$6,500
$6,500
$110,834

July

Super-deluxe
$171

September

$35,000
$32,326
$4,550
$13,883
$16,800
$2,800
$105,360
$7,000
$7,000
$119,360

Trendifurn
Cost of Good Sold Budget
for the quarter ended in September
August
September
$51,297
$59,847
$110,834
$119,360
$162,131
$179,206
$59,847
$59,847
$102,285
$119,360

$37,500
$34,635
$4,875
$14,875
$18,000
$4,000
$113,885
$7,500
$7,500
$128,885

$59,847
$7,500
$67,347
$59,847
$7,500

Handle

$
$

1300
350
1650
(325)
1325
1
1,325

Timber :
41 cm x 360 cm
35 cm x 350 cm
89 cm x 180 cm
45 cm x 119 cm
Glass
Handle

July
397800
397800
198900
132600
1300
1300

Materials required
August
433800
433800
216900
144600
1400
1400

NB : Material on hand to be equal to

of next month production requirements
Handle

$
$

1400
375
1775
(350)
1425
1
1,425

Handle

$
$
$
$

1500
380
1880
(375)
1505
1
1,505
4,255
517,874

cm

lengths & and costs

$
$
$

100
95
120

26

$ 10.00 /hour

Quarter

$105,000
$96,979
$13,650
$41,650
$50,400
$9,400
$317,079
$21,000
$21,000
$359,079

Quarter
$51,297
$359,079
$410,376
$59,847
$350,530

So, every purchase of timber which is 720 cm in different wide range can used for
Estimated
2
times
720/360
2
times
720/350
6
times
720/119

times

720/180

quired
September
October
453600
457200
453600
457200
226800
457200
151200
457200
1500
1520
1500
1520

25%

nt wide range can used for :