5.1 INFORMATION

Argent Industrial Limited has the following forecast (in units) for the next four months:

January 60 000

February 62 000

March 68 000

April 70 000

- The selling price per unit is R110. - The policy of the company is to maintain finished goods closing inventory at 50% of the next month's sales.

The cost of production per unit is as follows:

- The selling price per unit is AS FOLLOWS:

Direct Material 30

Direct Labour 25

Manufacturing overheads 15

70

REQUIRED

5.1.1 Compile a production schedule (units) for February and March. (6 Marks)

5.1.2 Calculate the cost of goods manufactured budget for February and March. (4 Marks)