A company manufactures two products, X and Y. A forecast of units to be sold in the first four months of the year is given below.
|Particulars||Product X [units]||Product Y [units]|
|January||1, 000||2, 800|
|February||1, 200||2, 800|
|March||1, 600||2, 400|
|April||2, 000||2, 000|
|May||2, 400||1, 600|
Other information is given below.
|Particulars||Product X &
Rs. Per Unit
|Product Y- Rs. Per Unit|
|Factory overheads per unit||3.00||4.00|
There will be no opening and closing work in progress [WIP] at the end of any month and finished product [in units] equal to half of the budgeted sale of the next month should be in stock at the end of each month. [including previous year December]
You are required to prepare,
A] Production budget for January to April and
B] Summarized production cost budget.