A company manufactures two products G and R. The standard data for both for next year is as follows:

	G PER UNIT	R PER UNIT
MATERIAL X @$2	24KG	30KG
MATERIAL Y @$5	10KG	8KG
MATERIAL Z @$6	5KG	10KG
SKILLED LABOR @$10	6 HOURS	5 HOURS
UNSKILLED LABOR @$6	10 HOURS	5 HOURS

Inventories for the next year is as under:

	G UNITS	R UNITS
Opening inventory	400	800
Closing inventory	500	1100

	MATERIAL X KGS	MATERIAL Y KGS	MATERIAL Z KGS
Opening inventory	30000	25000	12000
Closing inventory	35000	27000	12500

BUDGETED SALES FOR NEXT YEAR

G = 2400 UNITS

R = 3200 UNITS

Required

Prepare:

Production budget in units

Material usage budget in kgs

Material purchases budget in kgs and value

Direct labor budget in hours and value

Define budget. What is the difference between budget & forecast? Explain the benefits of budgets