Jaka Corporation manufactures and sells concrete blocks for the residential and commercial building. Jaka expects the following sales unit, the price per unit and desired ending inventory for the year 2021. Inventories for both 1st January 2021 and 1st January 2022 are expected to be 100,000 blocks. The raw materials and direct labour required for each concrete block are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales unit 2,000,000 6,000,000 6,000,000 2,000,000 Price/unit ($) 0.70 0.70 0.80 0.80 Ending Inventory 500,000 500,000 100,000 100,000 Units Raw materials 26kg Direct labour 0.015 hour Cost $0.01/kg $14/hour Jaka's policy is to have 5 million kg of raw materials in ending inventory for the third and fourth quarters and 8 million kg of the materials in ending inventory for the first and second quarters. Required: Prepare the following budgets for the year 2021: - (a) Sales budget. Show total sales by quarter and in total for the year. (b) roduction budget. Show total production unit by quarter and in total for the year. (c) Direct material usage and purchase budge (d) Direct labour budget.
Jaka Corporation manufactures and sells concrete blocks for the residential and commercial building. Jaka expects the following sales unit, the price per unit and desired ending inventory for the year 2021. Inventories for both 1st January 2021 and 1st January 2022 are expected to be 100,000 blocks. The raw materials and direct labour required for each concrete block are as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales unit 2,000,000 6,000,000 6,000,000 2,000,000 Price/unit ($) 0.70 0.70 0.80 0.80 Ending Inventory 500,000 500,000 100,000 100,000 Units Raw materials 26kg Direct labour 0.015 hour Cost $0.01/kg $14/hour Jaka's policy is to have 5 million kg of raw materials in ending inventory for the third and fourth quarters and 8 million kg of the materials in ending inventory for the first and second quarters. Required: Prepare the following budgets for the year 2021: - (a) Sales budget. Show total sales by quarter and in total for the year. (b) roduction budget. Show total production unit by quarter and in total for the year. (c) Direct material usage and purchase budge (d) Direct labour budget.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...
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Jaka Corporation manufactures and sells concrete blocks for the residential and commercial building. Jaka expects the following sales unit, the price per unit and desired ending inventory for the year 2021.
Inventories for both 1st January 2021 and 1st January 2022 are expected to be 100,000 blocks. The raw materials and direct labour required for each concrete block are as follows:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Sales unit
2,000,000
6,000,000
6,000,000
2,000,000
Price/unit ($)
0.70
0.70
0.80
0.80
Ending Inventory
500,000
500,000
100,000
100,000
Units Raw materials 26kg
Direct labour 0.015 hour
Cost $0.01/kg $14/hour
Jaka's policy is to have 5 million kg of raw materials in ending inventory for the third and fourth quarters and 8 million kg of the materials in ending inventory for the first and second quarters.
Required:
Prepare the following budgets for the year 2021: -
(a) Sales budget. Show total sales by quarter and in total for the year.
(b) roduction budget. Show total production unit by quarter and in total for the
year.
(c) Direct material usage and purchase budge
(d) Direct labour budget.
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