Ashraf Sports Pt Ltd manufactures two different types of products.

Following data is provided to you:

Forecasted Sales in Units for 2023

Product January February March

April

Sales Price

A

January 28.000

Feb 38,000

March 49.000

April 57.000

Sales price Rs 25 Per Unit

B

Jan 25,000

Feb 48.000

March 46,000

April 47,000

Sales price Rs 40 Per Unit

The Desired ending monthly finished goods inventory in units is 40% of the following months Forecasted Sales

Two types of materials are used in the production process. Company Policy is to maintain material inventory equals to 25 % of the following months production needs.

Material usage is expected as follows

Material Required to produce 1 unit

Material 1

5.5kg for product A and 3.5kg for product B

Material 2

7.5 kg for product A and 9.5 kg for product

B

Purchase price

Material 1 Rs 25 Per KG

Material 2 Rs 65 Per Kg

Direct Labor information

Prouduct A

2 hours per unit and 445 per hour

Prouduct B

3 hours per unit and 550 per hour

Required:

Prepare the Sales budget of both products A & B for the month of January

& February only. (1+1+1+1)

Prepare the Production Budgets of Product A & B for the Months of January & February only. (2+2+2+2)

Prepare the Material Purchase budget for material 1, & 2 for the months of January & February (2+2+2+2)

Prepare the Labor Budget of both products A & B for the months of January (1+1)