Week 12 Optional Homework - Feedback

Week 12 Optional Homework - Feedback - (NOVEMBER 2006 FINAL...

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(NOVEMBER 2006 FINAL EXAM–OPTIONAL HOMEWORK FOR WK12) QUESTION 5 (20 MARKS): BUDGETING FOR PLANNING AND CONTROL PART A: (15 marks) Y-Not Ltd manufactures a variety of custom-made classroom desk-and-chair sets which are sold to universities throughout New South Wales. Tony Giovanno, who is the company’s chief accountant, is currently preparing a budget for the first quarter of 2007. The following sales forecast for 2007 has been made by the company’s sales manager, Leia Maxwell. Sales forecast: January 2007 5,000 desk-and-chair sets February 2007 6,000 desk-and-chair sets March 2007 7,500 desk-and-chair sets April 2007 7,500 desk-and-chair sets May 2007 10,000 desk-and-chair sets The previous forecast for December 2006 sales was 4,500 desk-and-chair sets and at the end of December 2006, the company still had 1,000 desk-and-chair sets to be sold. It also held 5,200 metres of pine planks. Each desk-and-chair set requires 10 metres of Queensland pine planks and 1.5 hours of direct labour. Each set is expected to sell for $500. Pine planks cost $0.50 per metre and the company ends each month with enough planks to cover 10 per cent of the next month’s production requirements. The company incurs a cost of $20 per hour for direct labour wages. The company also ends each month with enough finished goods inventory to cover 20 per cent of the next
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This note was uploaded on 09/16/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Week 12 Optional Homework - Feedback - (NOVEMBER 2006 FINAL...

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