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Outcome 2 Assessment instructions Humbro Ltd is planning to produce and launch a limited edition board game based on an Olympic theme. You have been given the task of managing the new product launch. The Financial Director wishes to review the proposed costs and revenues before identifying an appropriate marketing strategy. You have put the figures together for the six months to June 2017 1 Projected unit Sales are January 3,000 February 4,000 March 4,000 April 5,000 May 8,000 June 9,000 Selling price per unit is 50. 70% of sales are for cash with the remainder on two months' credit. 2 The company will produce amounts equal to the expected sales each month. Inventory levels are expected to remain constant throughout the period. 3 Raw Material costs are 5 per unit. Purchases of Raw Materials are paid 60% cash and 40% one month after purchase. 4 The Direct Labour rate is 8 per hour and it takes three hours to produce each unit. All wages are paid in the month of production. 5 Variable Production overheads are 1 per labour hour and are paid in the month of production 6 Other monthly costs are: Selling and Distribution 2,000 Production Manager's Salary 2,500 Quality Manager's Salary 1,500 Notes to the Account 1 Admiration staff were de bons amounting to 250 hende December 2016 This bar tas not been pad yet and should be called 2 Distribution costs include con services which there Closing entory at 31 December 2016 od 1.500.000 4 is estimated that Corporation Tax of 0 wel beple on the prostor the year 5 Interest on the debertures for year should be provided The directors propose to provide for the depreciation of non-current assets for Land and Building Plant and Machinery Factures and Fings 3:25.000 75,000 Assessment task You are required to produce an income Stament, Sulement of Financial Position and a Statement of Changes in Equity as at 31 December 2016 (for intermaluse) Relevant working notes should be submited Outcome 2 Assessment instructions Humbro Ltd is planning to produce and launch a limited edition board game based on an Olympic theme. You have been given the task of managing the new product launch. The Financial Director wishes to review the proposed costs and revenues before identifying an appropriate marketing strategy. You have put the figures together for the six months to June 2017 1 Projected unit Sales are January 3,000 February 4,000 March 4,000 April 5,000 May 8,000 June 9,000 Selling price per unit is 50. 70% of sales are for cash with the remainder on two months' credit. 2 The company will produce amounts equal to the expected sales each month. Inventory levels are expected to remain constant throughout the period. 3 Raw Material costs are 5 per unit. Purchases of Raw Materials are paid 60% cash and 40% one month after purchase. 4 The Direct Labour rate is 8 per hour and it takes three hours to produce each unit. All wages are paid in the month of production. 5 Variable Production overheads are 1 per labour hour and are paid in the month of production 6 Other monthly costs are: Selling and Distribution 2,000 Production Manager's Salary 2,500 Quality Manager's Salary 1,500 Notes to the Account 1 Admiration staff were de bons amounting to 250 hende December 2016 This bar tas not been pad yet and should be called 2 Distribution costs include con services which there Closing entory at 31 December 2016 od 1.500.000 4 is estimated that Corporation Tax of 0 wel beple on the prostor the year 5 Interest on the debertures for year should be provided The directors propose to provide for the depreciation of non-current assets for Land and Building Plant and Machinery Factures and Fings 3:25.000 75,000 Assessment task You are required to produce an income Stament, Sulement of Financial Position and a Statement of Changes in Equity as at 31 December 2016 (for intermaluse) Relevant working notes should be submited

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