Budgetary Control



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Product
Sales (units)
Estimated stock (units)
(as per sales budget June, 2020 30 June,2020
P
150,000 14,000 QR 30


3. Production Cost Budget
 This budget shows the estimated cost of production The production budget is expressed in terms of cost (value It is shown in detail in respect of material cost,
labor cost & factory overhead.
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Ex:-The following information has been made available from the records of Ashen Ltd for the six months of 2019 (and the sales of January 2020) in respect of Product Alpha;
-The units to be sold indifferent months are:
July Sep Nov August Oct Dec January (There will be no work-in progress at the end of any month.
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 Finished units equal to half the sales of the next month will be in stock at the end of every month (including June Budgeted production and production cost for the year ending 31
st
Dec, 2019 are Production (units Direct materials per unit
Rs.10
Direct wage per unit
Rs.4
 Total factory OH apportioned to production Rs.88,000
You are required to prepared a) Production Budget for the six months of 2019, and b) Summarized production cost Budget for the same period.
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4.

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