Question

Q1. The Management of Saleh LLC wants you to prepare the Master Budget for the year 2019. Particulars Amount (AED) ETERE 2.400,000 Sale from Motor Pumps P Sale from Battery 1,800,000

Answer 1

	A	Sales From Motor Pump		$2,400,000
	B	Sales from Battery		$1,800,000
	C=A+B	Total Sales Revenue		$4,200,000
	D=C*10%	Direct Material Cost	$420,000
	E	Direct Labor Cost	$150,000
		Overhead Costs:
	F	Employee Salary(12000*12)	$144,000
	G=C*8%	Stores and Spares	$336,000
	H	Depreciation on machinery	$100,000
	I	Light and power	$80,000
	J	Factory repair and maintenance	$150,000
	K=E*10%	Other Factory expenses	$15,000
	L=F+G+H+I+J+K	Total Manufacturing Overhead	$825,000
	M=D+E+L	Cost of goods sold		$1,395,000
	N=C-M	Gross Profit		$2,805,000
	P	Administrative and Selling Expenses		$200,000
	Q=N-P	Operating Income		$2,605,000