TUTORIAL 1

NO
1 Sales Budget
Product Units Selling Price Total Value
CX-123 1000 100 100000
MP-456 2000 200 400000
500000

2 Production Budget
Product CX-123 MP-456
Sales + Closing Stock 1000 2000
(unit) 50 80
1050 2080
Opening Stock -100 -300
950 1780

3 Material Usage Budget

Product
Total Material Cost Per Unit Cost Of Total
CX-123 MP-456 Usage Material Use (RM)
Production (units) 950 1780
Material ABC (5units per CX-123/MP-456) 4750 8900
13650 20 273000
Material DEF (4units per Cx-123/MP-456) 3800 7120
10920 50 546000
819000

4 Material Purchase Budget

Material Closing Stock Total Material Used Total Required
Opening Stock Purchases Cost Per Unit Cost of Purchase
material units units Unit Material Units (Units)
(RM)
ABC 10 13650 13660 -200 13460 20 269200
DEF 30 10950 10980 -100 10880 50 542500
Total cost 811700

5 Direct Labour Budget

Product Production Unit Direct labour per Total hour Rate per
hour Labour cost
hour
CX-123 950 5 4750 50 237500
MP-456 1780 7 12460 50 623000
860500

6 Overhead Production Budget

absorption rate per hour 860500
15000 X 50
860500
 0.87
Activity level 860500
50
17210 direct labour hours
7 Administration Budget
total administration expenses 17000

8 Selling and distribution expenses

Total selling and distribution expenses 10000

9 Inventory Budget
Direct material Closing stock Cost per units Total cost
ABC 10 20 200
DEF 30 50 1500
1700
Finished product
CX-123 50 404.35 20217.5
MP-456 80 406.09 32487.2
52704.7
54404.7
CX-12
3 MP-456
Units Cost per units Total cost units Cost per units
Total cost
Material ABC 5 20 100 8 20 160
Material DEF 4 50 200 2 50 100
Labour 5 20 100 7 20 140
Production Overhead 5 0.87 4.35 7 0.87 6.09
404.35 406.09

10 Cost Of Good Sold

Cost of material used 819000
Direct labour cost 860500
Production overhead 15000
Total production cost 1694500
Increase in stock of finished goods
Opening stock of finished goods 2000
Closing stock of finished goods 52704.7
-50704.7
1643795.3
11 Summary budget
Sales 500000
Cost Of Goods Sold -1643795.3
Gross profit -1143795.3
Administration expenses 17000
Selling / distribution expenses 10000
 27000
Profit before tax -1170795.3
tax -500
-1171295.3