Ep 5

Budgeting:

	Consumption Budget
Particulars	October		November		December
Production	10000		12000		8000
Product	Y	Z	Y	Z	Y	Z
Consumption rate per product	3	4	3	4	3	4
Material Consumption	30000	40000	36000	48000	24000	32000
	Purchase Budget
Particulars	October		November		December
Product	Y	Z	Y	Z	Y	Z
Material Consumed	30000	40000	36000	48000	24000	32000
Closing Stock	18000	24000	12000	16000	18000	24000
Total	48000	64000	48000	64000	42000	56000
Opening Stock	-18000	-24000	-18000	-24000	-12000	-16000
Total Purchase Material	30000	40000	30000	40000	30000	40000
Per unit cost of material	2	5	2	5	2	5
Purchase Value	60000	200000	60000	200000	60000	200000

Reference

Paudel et. al, 'Cost and Management Accounting', Ashmita Publication