Functional Budgets Problems and Solutions
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Problem # 1:
Following data are related to Naeem Sultan manufacturing Ltd. You are required to prepare sales budget?
Estimated Sales:
Solution:
Sales Budget (in units and Rupees)
Problem # 2:
Estimated sales percentages for the last three-month period of the coming year of the Abdul Sami Tariq Company:
Estimated unit sales at Rs. 5, 7 and 8 per unit in October, November and December respectively
Towns Units Sale
Mansehra ……………….…………220
Abbottabad 350
Balakot 180
Haripur 70
Total ……………………………..820
Requirements: An estimate of sales by units and Rupees for each of the last three months for each district and in total?
Solution:
Sales Budget (in units and Rupees)
Problem # 3:
The Amna Tabbasum Hotel’s sales forecast for the next quarter, ending December 31st, indicates the following:
Product Expected Sales
Snapper 2,000 Units
Shrimp 3,500
Pea 5,200
Inventories at the beginning and desired quantities at the end of the quarter are as follows:
Product October 1st December 31th
Snapper 580 units 250 Units
Shrimp 160 150
Pea 130 180
Requirement: A Production Budget in units for next quarter?
Solution:
Production Budget (in units)
Problem # 4:
Following are date for Sara Qazi Company Budgets, you are required to prepare following budgets:
(a) An estimate of sales by Units and Rupee for each of the three Cities and in Totals
(b) Production Budget (in Units) (c) Direct Material Budget (in Units and amount)
Estimated sales percentages for the three cities of the coming year of the company are:
Estimated inventories at the beginning and desired quantities at the end of 2017 are:
Estimated inventories at the beginning and desired quantities at the end of 2017 are:
Solution:
Sales Budget (in units and amount)
Production Budget (in Units)
Direct Material Budget (in Units)
Problem # 5:
Gul Mohammad Incorporation prepared the following figures as a basis for its 2016 Budget:
Estimated inventories at the beginning and desired quantities at the end of 2016 are:
Required:
- Production Budget (in Units)
- Material Purchase Budget (in Units and amount)
Solution:
Production Budget (in units)
Direct Material Budget (in units and amount)
solution of question 4 is wrong