ABB limited provides you the following figures for the year I.

Product A Product B
Sales (in units): 1st quarter 1250 1600 Particulars
2nd quarter 2950 800 1st Quarter
3rd quarter 2700 1000 2nd quarter
4th quarter 3100 600 3rd quarter
Selling price per unit Rs 24 Rs 50 4th quarter
Target for year II
Sales quantity increase (decrease) -20% 25%
Selling price increase (decrease) 25% -20%
Sales area X, Y and Z respectively produces 10%, 20%, 70% of
product “A” sales and 70%, 20% and 10% of product ‘B’ sales

Sales Budget (Area Wise)

Proudct A
Particulars X(10%) Y(20%) Z(70%) Total
1st Quarter 3,000 6,000 21,000 30,000
2nd quarter 7,080 14,160 49,560 70,800
3rd quarter 6,480 12,960 45,360 64,800
4th quarter 7,440 14,880 52,080 74,400

ACC limited provides you the following figures for the year 2020.
Product A Product B
Sales (in units): 1 quarter
st
2,500 3200
2 quarter
nd
5900 1600
3 quarter
rd
5400 2000
4 quarter
th
6200 1200
Selling price per unit Rs 24 Rs 50
Target for year 2021
Sales quantity increase (decrease) -20% 25%
Selling price increase (decrease) 25% -20%
Sales area X, Y and Z respectively produces 10%, 20%, 70% of
product “A” sales and 70%, 20% and 10% of product ‘B’ sales.
 Sales Budget for year II
Product A Product B
Units Rate Total Units Rate Total
1,000 30 30,000 2,000 40 80,000
2,360 30 70,800 1,000 40 40,000
2,160 30 64,800 1,250 40 50,000
2,480 30 74,400 750 40 30,000

8,000 240,000 5,000 200,000

e)
Proudct B
X(70%) Y(20%) Z(10%) Total
56,000 16,000 8,000 80,000
28,000 8,000 4,000 40,000
35,000 10,000 5,000 50,000
21,000 6,000 3,000 30,000
X limited provides you the following figures for the year 20 Production Budget
Product A Product B Product A
Sales (in units) as per sales budget Particlars 1st 2nd 3rd
1st quarter 2014 1000 2000 Budgeted sales 1,000 2,360 2,160
2nd quarter 2014 2360 1000 Add: Closing Stock (50%) 1,180 1,080 1,240
3rd quarter 2014 2160 1250 2,180 3,440 3,400
4th quarter 2014 2480 750 Less: Opening stock 200 1,180 1,080
Stock position as on 1.1.2014 Budgeted Production 1,980 2,260 2,320
Percentage of 1st quarter 2014 sales 20% 100%
Stock position ending 1st, 2nd, and
3rd quarter
Percentage of next quarter’s sales 50% 50%
Stock position on 31.12.2014 2200 1000

Prepare a production budget for the year 2014.

Bharat limited provides you the following figures for the year 2015.
Product A Product B
Sales (in units) as per sales budget
1st quarter 2015 2000 4000
2 quarter 2015
nd
4750 2000
3 quarter 2015
rd
4320 2500
4 quarter 2015
th
4960 1500
Stock position as on 1.1.2015
Percentage of 1st quarterst 2015 sales 20% 100%
Stock position ending 1 , 2nd, and 3rd
quarter
Percentage of next quarter’s sales 50% 50%
Stock position on 31.12.2015 4400 2000
Prepare a production budget for the year 2015.
tion Budget
uct A Product B
4th 1st 2nd 3rd 4th
2,480 2,000 1,000 1,250 750
2,200 500 625 375 1,000
4,680 2,500 1,625 1,625 1,750
1,240 2,000 500 625 375
3,440 500 1,125 1,000 1,375
X limited provides you the following information at 80% capacity
Production and sales 2,000 units
Direct materials 1 per unit
Direct labour 1 per unit
Direct expenses 0.80 per unit
Production overheads (15% variable) 2 per unit
Administrative overheads (80% fixed) 2 per unit
Selling & distribution overheads (25%
2 per unit
variable)
Total cost 8.80 per unit
Profit per unit 1.20 per unit
Selling price 10 per unit
Draw up a flexible budget at 60% and 90% capacity.

The expenses for the production of 5000 units in a factory are

given as follows:
Materials 50 per unit
Labour 20 per unit
Variable overheads 15 per unit
Fixed overheads (Rs 50,000) 10 per unit
Administrative expenses (5% variable) 10 per unit
Selling expenses (20% fixed) 6 per unit
Distribution expenses (10% fixed) 5 per unit
Total cost of sales per unit 116
You are required to prepare a budget for the production of 7,000 units.
 Fexible budget
60%(1,500 Units) 80%(2,000units) 90%(2,250Units)
Particulars
Unit Total Unit Total Unit Total
Direct Material 1.00 1500 1.00 2000 1.00 2250
Direct Labour 1.00 1500 1.00 2000 1.00 2250
Direct expenses 0.80 1200 0.80 1600 0.80 1800
Production overheads

Variable (15%) 0.30 450 0.30 600 0.30 675

Fixed(85%) 2.26 3400 1.70 3400 1.51 3400
Administrative overheads
Fixed(80%) 2.13 3200 1.60 3200 1.42 3200
Variable (20%) 0.40 600 0.40 800 0.40 900
S & D overheads
Fixed(75%) 2.00 3000 1.50 3000 1.33 3000
Variable (25%) 0.50 750 0.50 1000 0.50 1125
Total cost 10.39 15600 8.80 17600 8.26 18600
Add : Profit -0.39 -600 1.20 2400 1.74 3900
Selling price 10.00 15000 10.00 20000 10.00 22500

Particulars 5,000 units 7,000 units

Unit Total Unit Total
f 7,000 units.
 80 2,000
60 ?
60/80*2,000 1,500
90 ?
90/80*2,000 2,250
A manufacturing company provides you the following information
Particulars Product A Product B
Material X- 3 perunit 2 units 4 units
Material y 1 per unit 1 unit 2 units
units to be produced by production budget 10,000 4,000
Inventory of Raw Material
Particulars Material X Material Y
Opening stock as on 1-01.2020 12,000 units 2,000 units
Closing stock as on 31-12-2020 16,000 units 4,000 units
Required: Prepare Direct Material Usage and Purchase Budget for the year 2020
 Raw Material Usage and Purchase Budget
Particulars Material X Material Y
Product A 20,000(10,000*2) 10000(10,000*1)
Product B 16,000(4,000*4) 8,000(4,000*2)
Total 36,000 18,000
Add: Closing stock 16,000 4,000
52,000 22,000
Less: Opneing stock 12,000 2,000
Budgeted Purchase 40,000 20,000
Rate per unit 3 1
Budgeted Purchase (Rs.) 120,000 20,000
The income and expenditure forecaste for months of march to august, 2018
are given as follow. Cash Budget
Sales Purchases Office Selling Particulars
Months Wages turing
(credit) (credit) exp. exp.
March 60000 36000 9000 3500 2000 4000 Opening balance
April 62000 38000 8000 3750 1500 5000 Receipts :
May 64000 33000 10000 4000 2500 4500 Recevied from debtors(1 Month)
June 58000 35000 8500 3750 2000 3500
July 56000 39000 9500 5000 1000 3500 Total Receipts
August 60000 34000 8000 5200 1500 4500 Payments:
You are given the following further information: Payment to creditor (2month)
Plant costing Rs 16000 is due for delivery in July payable 10% on delivery
and the balance after 3 months Wages
Advance tax of Rs 8000 is payable in march and june each Manufacturing exp.
Creditors allow 2 months credit and debtors are paying one month late.
Office exp.
Opening balance of cash Rs 8000. Lag of one month in expenses.
Selling exp.
Plant on delivery (10%*16,000)
Advance tax
Total Payments
Closing Balance
Cash Budget
May June July
8,000 15,750 12,750

62,000 64,000 58,000

70,000 79,750 70,750

36,000 38,000 33,000

8,000 10,000 8,500

3,750 4,000 3,750

1,500 2,500 2,000

5,000 4,500 3,500
1,600
8,000
54,250 67,000 52,350
15,750 12,750 18,400
A company is expecting to have Rs 32000 cash in hand on
1.4.2020 and it request you to prepare cash budget for the three
months, April to June 2020. The following information is
supplied to you:
Month Sales Purchases Wages Expenses
February 70000 44000 6000 5000
March 80000 56000 9000 6000
April 96000 60000 9000 7000
May 100,000 68,000 11000 9000
June 120,000 62,000 14,000 9000
Other information
Period of credit allowed by supplier is two months
25% of sales is for cash and the period of credit allowed to
customers for credit sales is one month
Delay in payment of wages and expenses one month
Income tax Rs 28000 is to be paid in june 2020.
 Cash Budget
Particulars April May June
Opening balance 32,000 57,000 82,000
Receipts :
Recevied from debtors(75%) (1 Month) 60,000 72,000 75,000
Cash Sales (25%) 24,000 25,000 30,000
Total Receipts 116,000 154,000 187,000
Payments:
Payment to creditor (2month) 44,000 56,000 60,000

Lag in payment of wages ( 1 Month) 9,000 9,000 11,000

Lag in payment of expenses ( 1 Month) 6,000 7,000 9,000
Income tax 28,000
Total Payment 59,000 72,000 108,000
Closing Balance 57,000 82,000 79,000