3(i):
Ryston Limited
For the year ending 31 December 2021
Production Budget
Particulars
ABC
DEF
Sales in units
3400
2300
Add: Desired Ending Inventory
431
590
Total units needed
3831
2890
Add: Beginning Inventory
542
358
Units to be produced
3289
2532
Material Usage Budget
Particulars
Material X
Material Y
Production of ABC
A
3289
3289
Production of DEF
B
2532
2532
Kgs of material required for per unit of ABC
C
4
2
Kgs of material required for per unit of DEF
D
7
6
Kgs of material required for ABC
E= A*C
13156
6578
Kgs of material required for DEF
F= B*D
17724
15192
Total Kgs of material required
G= E+F
30880
21770
Purchase Budget
Particulars
Material X
Material Y
Total Kgs of material required
A
30880
21770
Closing inventory
B
732
833
opening inventory
C
865
690
Total Kgs of material required to be
purchased
D= A+B-C
30747
21913
Rate per Kg
E
3
5
Purchase cost
F= D*E
92241
109565
Labour Budget
Particulars
ABC
DEF
Production units
A
3289
2532
Hours per unit
B
5
8
Labour hours
C= A*B
16445
20256
Rate per hour
D
16
16
Labour cost
E= C*D
263120
324096
