Month
Budgeted Sales
April
20000
May
50000
June
30000
July
25000
August
15000
Selling Price
10
20% ending inventory is always maintained from the following month budgeted sales units
Material requirement per unit is 5 and, 10% from the following month budgeted production units will be
maintained at the end of the period
DM unit price is $0.40
Cost per direct labor is $8
Direct Labor hour per unit is 0.1
Variable Selling & Administration expenses per unit $.50
Budgeted fixed Selling & Administration expenses $70,000
Payment Pattern
DM Purchase on Credit
Payment for Material
Sales – Credit
Receipt of sales
50% immediately
50% Following Month
70%Cash
25% Following Month
5% uncollected
DL
Immediately
Manufacturing OH
Immediately
Non- Manufacturing OH
Following month