A company manufacturing two product .. Green and Red

Product Green per unit Product red per unit

Direct material

X at 2 pound per kg 24kg 30kg

Y at 5 pound per kg 10kg 8 kg

Z at 6 pound per kg 5kg 10kg

Direct wages

Unskilled at 6 pound per hour 10 hours 5 hours

Skilled at 10 pound per hour 6 hours 5 hours

Budget inventories for next year as follows

Product Green per unit Product red per unit

Jan 1 400 800

31 dec 500 1100

Material x kg Material y kg Material z kg

1 jan 30000 25000 12000

31 dec 30000 27000 12500

Budget sale for next year products green 2400 units product red 3200 units

Requirements

A ) prepare the production budget in units ?

b) prepare the material usage budget in kilos ?

c) prepare the material purchases budget in kilos and pound?\

d) prepatre the direct labour budget in hours and in pound ?

e) define a budget ? hiw is a budget is different from a forecast ? illustrate some of the possible uses of budget ?