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Wellyboot Manufacturing has two main products ‘Blue boot’ and ‘Red boot’.
Both products use the same common material and labour but in differing proportions.The annual budget is broken down into four separate 13 week periods. The following information relates to the 13 week period ended 31 March 20X3.
Marketing and production data
Budgeted sales (volume in units). BB. RB
850.1250Inventory levels at the start of the budget period.
Finished goods
BB – 165
RB – 365At the end of the period inventory levels are planned as –
• Finished goods of ‘BB’ should be 7 days sales volume.
• Finished goods of ‘RB’ should be 14 days sales volume.
• Assume a five day week for both sales and production.
Calculate –
(a Production budgets in units for ‘Blue boot’ and ‘Red boot’ products
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