Answer to Question #315827 in Financial Math for bonjour

Question

Information for XZ Limited for the six months of 2020 (and the sales of January 2021) in respect of product X

(i) units to be sold:

July 2020 : 1,100         November 2020:  2,500

August 2020 : 1,100            December 2020:  2,300

September 2020 : 1,700     January 2021 :    2,000

October 2020 : 1,900

(ii)   will be no work-in-progress at the end of any month

(iii)         Finished units equal to half the sales of the next month will be in stock at the end of every month (including June 2020)

(iv)  Budgeted production and production cost for the year ending 31^st December 2020 are thus:

Production (units)                                                      22,000

Direct materials per unit                                             10

Direct wages per unit                                                 4

(v)  Total factory overheads apportioned to production        88,000

Required:

a)    Production budget for the six months of 2020

b)    Summarized production cost budget for the same period