Question

I think I have A & B correct but I'm so lost. The attached screenshots after the question are the templates I'm using. Any help is very appreciated.

Solution (c): Direct Materials Budget

 Workings: For Production of Unit J Total Units to be produced (as determined in solution(b)) 51000 Each unit of J, requires 3 pounds of 'A' and 2 pounds of 'B' Therefore, Material A for Unit J (51000*2) 153000 Therefore, Material B for Unit J (51000*2) 102000 For Production of Unit K Total Units to be produced (as determined in solution(b)) 31000 Each unit of K, requires 2 pounds of 'A' and 4 pounds of 'B' Therefore, Material A for Unit J (31000*2) 62000 Therefore, Material B for Unit J (31000*4) 124000 Budget: Direct materials required: Material A Material B For Unit J 153000 102000 For Unit K 62000 124000 215000 226000 Desired Ending material inventory (given) 14000 8000 Total pound of material already available in the beginnig 19000 7000 Total pound of material to be purchased 210000 227000 Unit Purchase Price 9 5 Total Material Purchases 1890000 1135000

Solution (d): Direct Labour Budget

 Direct labour hours required for production Unit J (51000units * 0.5hrs per unit) 25500 Unit K (31000units * 1 hrs per unit) 31000 Total Direct Labour Hrs 56500 Labour cost per Hour 12 Total Direct Labour Cost 678000

Solution (e): Manufacturing overhead cost Budget

 Total Direct Labour Hours (as determined in (d)) 56500 Manufacturing overhead cost per hour 6 Total variable Manufacturing overhead cost 339000 Total fixed Manufacturing overhead cost (given) 270000 (90000 is per month. Since budget is for 3 months (90000*3)) Total Manufacturing overhead cost 609000

Solution (f): Selling and admin expense budget

 Total Sales Revenue (as determined in (a)) 6600000 Selling and admin expense cost % 10% Total variable Selling and admin expense cost 660000 Total fixed Selling and admin expense cost (given) 540000 (180000 is per month. Since budget is for 3 months (180000*3)) Total Selling and admin expense cost 1200000

(as a rule only 4 sub questions can be answered. therefore, solution from (c) to (f) is provided)

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