1. Cost & Management Accounting
Budgeting
Lecture-34
Mian Ahmad Farhan (ACA)

2. For the month of Jan-March
Sales Budget
XYZ Limited
Sales Budget
For the month of Jan-March
Regions
Product
Jan
Feb
Total X Y Q P A B C

3. Example Town Product Quantity Per unit A X 50,000 16 Y 35,000 10 B
Shadon Ltd has three sales division at Town A, B C. It sells two products X and Y. The budgeted sales for the month of Jan, Feb and March at each place given below:
Town
Product
Quantity
Per unit A X
50,000 16 Y
35,000 10 B
55,000 C
75,000

4. Example Town Product Quantity Per unit A X 62,500 16 Y 37,500 10 B C
Budgeted sales during the Feb is as follow:
Town
Product
Quantity
Per unit A X
62,500 16 Y
37,500 10 B C
77,500

5. Example Town Product Quantity Per unit A X 4,000 16 Y 2,500 10 B
Budgeted sales during the March is as follow:
Town
Product
Quantity
Per unit A X
4,000 16 Y
2,500 10 B
12,500
6,500 C
5,000
9,000

6. For the month of Jan-Feb
Solution
XYZ Limited
Sales Budget
For the month of Jan-Feb
Regions
(Town)
Product
Jan
Feb
March Q P A B C X Y
Total

7. XYZ Limited Sales Budget For the month of Jan Regions (Town) ProductQ P A B C X
54,000 16
8,64,000 Y
37,500 10
3,75,000
Total
91,500
----
12,39,000
-----
55,000
5,50,000
---
75,000
12,00,000
1,29,000
20,64,000
92,500
9,25,000
2,21,500
29,89,000

8. Production Budget Units No. of units sold xxx
Add Desired closing stock xxx
xxx
Less Estimated opening stock (xxx)
No. of units manufactured xxx

9. Production Budget Units No. of units to be sold xxx
Add No. of units held as Closing
Finished Goods stock xxx
No. of units available for sale xxx
Less No. of units held as Opening
Finished Goods stock (xxx)
No. of units to be produced xxx

10. Production Budget Units Jan Feb March Total 800 200 1,200 500 1,000
Units of goods to be sold
800
200
1,200
500
1,000
300
3,000
Add Closing finished goods stock
Units of goods available for sale
(100)
1,700
(200)
1,300
(500)
3,300
Less Opening finished goods stock
Cost of goods produced
900
1,500
3,200