Question 4
A company manufactures two products, SAMS and JAMS. Budgeted sales for next year are : Product SAMS 2400 units at Ghc 45 per unit Product JAMS 450units at Ghc 60 per unit.
Standard cost data for the products for next year are as follows;
Product SAMS per Unit Product JAMS per Unit
Direct Materials
U at GH 2 per Kg 24kg 30kg
V at GH 5 per Kg 10kg 8kg
W at GH 6 per Kg 5kg 10kg
Direct Wages
Unskilled at GH5 per hour 10 hours 5 hours
Skilled at GH 10 per hour 6 hours 5 hours
Budgeted stocks for next year are as follows:
SAMS (Units) JAMS (Units)
01-Jan 400 800
31-Dec 500 1100
Material U Material V Material W
01-Jan 30000 25000 12000
31-Dec 35000 27000 12500
Prepare the following budgets for next year;
a. Sales budget in cash
b. Production budget, in units
c. Material usage budget, in kg and in cash
d. Direct labour budget, in hours and in cash
