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The following are the estimated sales of a company for eight months ending 30.11.2012
Month estimated sales (units)
April 12000
May 13000
June 9000
July 8000
August 10000
September 12000
October 14000
November 12000
As a matter of policy, the company maintain the closing balance of finished goods and raw materials as follows :
Finished Goods - 50% of estimated sales of next month
Raw materials- estimated consumption for next month
Every unit of production requires 2kg of raw materials costing Nu. 5 per kg.
Prepare Production Budget, Raw Materials Budget and Cash Payment Budget (if company has the payment policy of 60% on the month of purchase and remaining in the following month) of the company for the half year ending 30th September 2012.
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The following are the estimated sales of a company for eight months ending 30.11.2012
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