FACULTY OF THE BUILT ENVIRONMENT, ARTS AND SCIENCES

DEPARTMENT OF LANDSCAPE ARCHITECTURE AND QUANTITY SURVEYING

BACHELOR OF SCIENCE IN QUANTITY SURVEYING
CONSTRUCTION FINANCE – (BQS 4106)
ASSIGNMENT 2
GROUP MEMBERS

SAVIOUR NGWAKO -01171797712

OLEKILE MOKGWETHISI- 01171876212

LESLEY JACKSON- 01171906512

KABO RAMOTSANE-
QUESTION 1

Production Budget of product X for Construction Limited for the period July 2019 to January 2020

Particulars July August September October November December

A Sales units 11 000 11 000 17 000 19 000 25 000 23 000
(forecasting)
B Adding closing
stock of finished 5 500 8 500 9 500 12 500 11 500 10 000
goods ( half of
next month)
C Total production
(A+B) 16 500 19 500 26 500 31 500 36 500 33 000

D Less opening stock

of finished goods. 5 500 5 500 8 500 9 500 12 500 11 500
E Production
Budget units.( C – 11 000 14 000 18 000 22 000 24 000 21 500
D)
Total production
Budget units. 110 500 Units

|* Estimated Production = Expected Sales + Desired Closing Stock –Estimated Opening Stock

Production Cost Budget from (July to December 2020)

Particulars Unit Amount Units Amount Total

Direct materials
cost 100 110 500 11 050 000
Direct wages 40 110 500 4 420 000
Factory overhead
(88 000 / 22 000)*110 40 110 500 4 420 000
500
Total Production Cost P 19 890 000