Answer All the Question(s)

a) The following information is available for XYZ Company Period 1 2 3 4 5 6 Units sold (000) 150 120 180 150 140 160 Units produced (000) 150 150 150 150 170 140 Budgeted activity is expected to average 150,000 units per period and there is no opening stock for period 1. Unit selling price is Ksh 10, Unit variable cost is Ksh 6, fixed costs per period is Ksh 300,000 while non manufacturing overheads are 100,000 per period. Required: Prepare a profit and loss statement based on variable and absorption costing b) KPLC plans inventory levels (at cost) at the end of each month as follows: May, $275,000; June, $220,000; July, $270,000 and August, 240,000. Sales are expected to be June, $440,000: July, $350,000; August, $420,000. Cost of goods sold is 60% of sales. Purchases in April were $250,000; May $180,000. Payments for each months purchases are made as follows: 10% during that month; 80% the next month and the final 10% the next month. Prepare budget schedules for June, July and August for purchases and for disbursement for purchases