Management Accounting: Budget Schedules and Recommendations for Continuous Improvement

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author Note

1MANAGEMENT ACCOUNTING
Table of Contents
Answer to Part 1..............................................................................................................................2
Answer to requirement a..............................................................................................................2
Answer to requirement b.............................................................................................................2
Answer to requirement c..............................................................................................................2
Answer to requirement d.............................................................................................................3
Answer to requirement e..............................................................................................................4
Answer to requirement f..............................................................................................................4
Answer to requirement g.............................................................................................................4
Answer to requirement h.............................................................................................................5
Answer to requirement i..............................................................................................................5
Answer to requirement i..............................................................................................................5
Answer to requirement j..............................................................................................................6
Answer to requirement k.............................................................................................................6
Answer to requirement l..............................................................................................................7
Answer to Part 2..............................................................................................................................8
Business Memorandum...............................................................................................................8
Bibliography..................................................................................................................................10

2MANAGEMENT ACCOUNTING
Answer to Part 1
Answer to requirement a
Revenue Budget for 2018:
Particulars Amount
Projected Sales Volume (in units) 2000
Estimated Retail Price $ 800
Budgeted Sales Revenue $ 1,600,000
Answer to requirement b
Production Budget (in units) for 2018:
Particulars
Amoun
t
Projected Sales Volume 2000
Add: Closing Finished Goods Inventory 300
2300
Less: Opening Finished Goods Inventory 200
Budgeted Production Volume 2100
Answer to requirement c
Direct Material Usage & Purchase Budget:
Particulars Amount
Oak Tops:
Production Volume 2100
Material Requirement per desk (sq.cm.) 3
Total Oak Tops Usage (sq.cm.) 6300
Add: Closing Oak Top Inventory 24
6324
Less: Opening Oak Top Inventory 40

3MANAGEMENT ACCOUNTING
Budgeted Purchase Volume of Oak Top
(in sq.cm.) 6284
Unit Price $ 120
Budgeted Purchase of Oak Tops $ 754,080
Oak Legs:
Production Volume 2100
Material Requirement per desk (in units) 4
Total Oak Legs Usage (in units) 8400
Add: Closing Oak Legs Inventory 80
8480
Less: Opening Oak Legs Inventory 100
Budgeted Purchase Volume of Oak Legs
(in units) 8380
Unit Price $ 7
Budgeted Purchase of Oak Tops $ 58,660
Total Budgeted Purchase $ 812,740
Answer to requirement d
Direct Manufacturing Labor Budget:
Particulars Amount
Budgeted Production Volume 2100
Direct Manufacturing Labor hours per desk 3
Total Manufacturing Labor Hours 6300
Labor Cost per hour $ 55.00
Total Direct Labor Cost $ 346,500