Prepare the production budget and the summarized production cost budget for 5 months ending 31 May…

The sales forecast in units for the first six months of 2009 is given as follows:

January 1,500 April 2,500
February 1,700 May 2,900
March 2,100 June 2,900

Finished goods equal to half the sales for the next month will be in stock at the end of each month (including for previous December). Budgeted production and production cost for the whole year are as follows:

Production units 25,000.
Material cost per unit Rs.13.
Wages per unit Rs. 5.50.

Factory overhead for the year Rs. 75,000.

Prepare the production budget and the summarized production cost budget for 5 months ending 31 May 2009.

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