1. J M Fremgen, Accounting for Managerial Analysis, (Richard D. Irwin, Homewood, Illinois, 1976), p 150. 2. Ibid., p 151 3. RM Copeland and PE Dascher, Managerial Accounting, John Wiley and Sons, New York, 1978), p 35. 4. Ibid., p 34. 5. Fremgen, op cit., p 153. 6. It should, however, be noted that depreciation will be relevant to the computation of taxes. 7. Break-even analysis is discussed in Chapter 16 and inventory in Chapter 8. 36. 8 in hack 149 P.17.1 Your company manufacturers two products, A and B. A forecast of the units to be sold in the first seven months of the year is given below: Month Product A Product B January 1,000 2,800 February 1.200 2,800 March 1,600 2,400 April 2,000 2,000 May 2,400 1,600 2,400 1,600 July 2,000 1,800 June It is anticipated that (a) there will be no work-in-process at the end of any month, and (b) finished units equal to half the sale for the next month will be in stock at the end of each month (including the previous December). Budgeted production and production costs for the whole year are as follows: Particulars Product A Product B Product (units) 22,000 24,000 Per unit direct material $12.50 *19.00 Per unit direct labour 4.50 7.00 Total factory overhead (apportioned) 66,000 96,000 Prepare for the six months period ending June 30 (1) (a) production budget for each month, and (ii) a summarised production cost budget