Scribd
Upload
44 views4 pages

Sales Budget

This document outlines the sales, production, material usage, purchase, direct labor, factory overhead, closing stock value, and profit and loss budgets for a company. It estimates sales revenue of $3.5 million. Production of 69,000 units requires 207,000 units each of materials XY and WZ. Direct labor is budgeted at $1,656,000 for production and $1,104,000 for finishing. Factory overhead is estimated at 5% of sales revenue, or $175,000. The cost of goods sold is calculated to be $3,435,000, resulting in an estimated loss of $310,000 when accounting for other expenses.

Uploaded by

nileshdilushan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
44 views4 pages

Sales Budget

This document outlines the sales, production, material usage, purchase, direct labor, factory overhead, closing stock value, and profit and loss budgets for a company. It estimates sales revenue of $3.5 million. Production of 69,000 units requires 207,000 units each of materials XY and WZ. Direct labor is budgeted at $1,656,000 for production and $1,104,000 for finishing. Factory overhead is estimated at 5% of sales revenue, or $175,000. The cost of goods sold is calculated to be $3,435,000, resulting in an estimated loss of $310,000 when accounting for other expenses.

Uploaded by

nileshdilushan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

1.

Sales budget
50*70,000

3,500,000

2. Production budget
Sales

70,000

(-) opening stock

(5,000)
65,000

(+) closing stock

4,000

Production required

69,000

3. Material usage budget


XY

69,000*3

207,000

WZ

69,000*3

207,000

4. Material purchase budget


XY

WZ

usage
(-) opening stock

207,000
(10,000)

207,000
(9,000)

(+) closing stock

197,000
15,000

198,000
13,500

Unit cost

212,000
1

211,500
2

total

212,000

423,000

5. Direct labor budget


production

finishing

Production unit

69,000

69,000

Direct labor hours

276,000

138,000

Direct labor rate

total

1,656,000

1,104,000

6. FPOH

3,500,00 * 5%

175,000

7. Value of closing RM stock


XY
WZ

15,000 * 1
13,500 * 2
Total

15,000
27,000
42,000

8. Value of closing finish stock


Unit cost material

Labor

$
3
6

XY 3 * 1
WZ 3 * 2
P4*6
F2*8

$
9

24
16

40
49
4000
196,000

Total direct cost


Unit stock
Total

9. Admin selling & distribution = $200,000

10.

Cost of goods sold

Opening stock (5000 * 50)


Manufacturing cost (69,000 * 49)

250,000
3,381,000
3,631,000

(-) Closing stock

(196,000)
3,435,000

11.

Profit & loss account

Revenue (70,000 * 50)

3,500,000

Cost of sales

(3,435,000)

Gross margin

65,000

FPOH

175,000

Selling & admin

200,000

loss

310,000

You might also like