a) Prepare the following budgets from the above information:

(i) Sales budget

(ii) Production budget

(iii) Material purchases budget

(iv) Labour budget

Question 2 T Ltd manufactures smartphones. It has three main products being A, B and C. Functional budgets have to be prepared the year ended 31 Dec 2020. Budgeted sales Product A 4,000 @ 100 each Product B 5,000 @ 120 each Product C 6,000 @ 160 each Budgeted use of raw material (RM) components for products A, B and C. RMX RMY RMZ Product A 2 2 2 Product B 4 4 3 Product C 6 5 4 Cost per RMX, RMY and RMZ 4 5 3 Finished goods budget Beginning End A 800 1,000 B 1,200 1,200 1,200 1,400 Raw materials stock Beginning End RMX 7,000 8,000 RMY 6,000 5,000 RMZ 5,000 3,000 Labour hours per unit Labour hourly rate A 4 4 B 8 5 12 6