Accounting 9706 · AS & A Level · Budgeting and budgetary control

Budgeting and budgetary control — practice question

Look at Source B1 in the insert.

(a)[6]

Prepare the direct materials purchases budget, in dollars, for February, March and April 2022.

(b)[14]

Prepare the cash budget for March and April 2022.

(c)[2]

Comment on whether April is suitable for replacing the machinery.

(d)[3]

Advise the directors whether they ought to restrict production to 140 units a month. Support your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme.