Functional Budgets Problems and Solutions

 

Functional Budgets Problems PDF Download

 

Problem # 1:

Following data are related to Naeem Sultan manufacturing Ltd. You are required to prepare sales budget?

 

Estimated Sales:

functional budgets

 

Solution:

 

Sales Budget (in units and Rupees)

sales budget

 



Problem # 2:

Estimated sales percentages for the last three-month period of the coming year of the Abdul Sami Tariq Company:

budget example

 

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)

master budget

 

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)

production budget



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)

sales forecast example

 

Estimated sales percentages for the three cities of the coming year of the company are:

budgeting sales

 

Estimated inventories at the beginning and desired quantities at the end of 2017 are:

sales sheet example

 

Estimated inventories at the beginning and desired quantities at the end of 2017 are:

sales sheet examples

 

Solution:

 

Sales Budget (in units and amount)

sales budget example

 

Production Budget (in Units)

production budget template

 

Direct Material Budget (in Units)

direct materials budget

 

Problem # 5:

Gul Mohammad Incorporation prepared the following figures as a basis for its 2016 Budget:

monthly budget example

 

Estimated inventories at the beginning and desired quantities at the end of 2016 are:

budget example

 

Required:

  • Production Budget (in Units)
  • Material Purchase Budget (in Units and amount)

 

Solution:

 

Production Budget (in units)

production budget solved example

 

Direct Material Budget (in units and amount)

direct materials budget

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