Reference no: EM132551659

Jan 2018 (Modified)

Use the information provided below to calculate the:

Question 1: Number of units that should be produced for the year 2018 (production schedule/budget).

Question 2: Sales budget for 2018 in units and rands

Question 3: Expected cost of sales (in Rands) for 2018.

INFORMATION

The following reflect the forecast of Mondelez Manufacturers for the year 2018 for the only product that it manufactures:

                                          Units                    Price per Unit

Sales forecast                          6000                  R200

Expected opening inventory         1000                 R120

Desired closing inventory Units        1200                     ?

The FIFO method is used to value inventories. The production cost per unit for 2018 is expected to be R130

Jan 2019

Answer the following questions from the information given below:

Question 4: Prepare the Production Schedule (production requirements in units) for February and March 2018.

Question 5: Calculate the expected total production cost for March 2018.

INFORMATION

The information given below was supplied by Fiamma Manufacturers.

• The expected sales for February to April of 2018 are as follows:

               Units

February 4000

March 4200

April 4400

• Finished units equal to 40% of the sales for the following month will be in inventory at the end of each month.
• Expected production costs are as follows: Variable costs, R100 per unit. Fixed costs, R50 000 per month.