12 Question 5(b): Budgeting - Sales and Production Budgets 8 Marks A Company manufactures two products X and Y. The current pattern of Sales of Product X and Product Y is in the ratio of 53. The budgeted data for the quarter ending 30-09-2017 is as under: Particulars Product X Product Y Direct Material Cost per Unit 161 176 Direct Labour Cost per Unit 75 90 Variable Overheads per Unit 30 750 Commission on Sales 4% of Selling Price 5% of Selling Price PN Ratio 20% 16% Stock as on 01.07.2017 1,400 units 1,050 units The annual Fixed Overheads amounts to + 25,36,000 and it is assumed to be occurred evenly throughout the year. The Company desires profit of 4,50,000 per quarter. Closing Stock is to be maintained at 20% of the budgeted Sales. Required: 1. Calculate Sales Quantity to be sold during quarter ending 30.09.2017 2. Prepare Production Budget in units for the quarter ending 30.09.2017