Week 1

Question 1

What is the Budget Process order?

Answer 1

Sales budget
Production budget
Direct materials usage budget
Direct materials purchase budget
Direct labour budget

Question 2

Sales budget table

Answer 2

Forecast sales(units) x
Selling price per unit x
=Total revenue x (multiply the two above)

Question 3

Production budget table

Answer 3

Sales x
-Opening stock (x)
+Closing stock x
=production (units)

Question 4

Direct materials usage budget table

Answer 4

A B
X prod units x 10 prod units x 5
Y prod units x 8 prod units x 9
=

Question 5

Direct materials purchasing budget

Answer 5

Usage (kg)
-Opening stock
+Closing Stock
=Purchase(kg)
Purchase cost budget purchase(kg) x £cost

Question 6

Direct labour budget

Answer 6

A B
Production (units) x
Labour hrs per unit 10hrs
Total labour hrs x(10hrs)
Total labour cost x(10) x Labour £ per hr