1. Binaya Apparel Limited manufactures three products, known as Alpha, Sigma and Ridma. The following information is available for 2020.

The budgeted sales of Binaya Apparel Limited for 2020 are as follow:

Product	Sales units	Unit selling price
Alpha	20,000	Rs. 25
Sigma	18,000	Rs. 20
Ridma	15,000	Rs. 22

The opening stocks at the beginning of the year 2020.

Product	Production units	Component	Component part units
Alpha	3,000	A	40,000
Sigma	3,000	B	50,000
Ridma	2,000	C	60,000
		D	40,000
		E	10,000

The marketing director intends to run a marketing campaign towards the end of 2020 and has requested that product unit stocks should be increased at the end of 2020 above the commencement stocks by the following; Alpha increased by 20%. Sigma increased by 50% and Ridma increased by 20%

The purchasing director has requested that all components part stocks be reduced by 20% at the end of 2020 because of improved delivery times from suppliers.

The product material specification and component cost for each of the products and are as follows:

	Component part	A	B	C	D	E
	Part cost (each)	50 cents	35 cents	60 cents	55 cents	Rs. 1
Product	Component parts
	per product
Alpha		3	4	6	2	1
Sigma		2	3	4	2	1
Ridma		5	2	3	3	1

The standard labour usage for each product and labour rates are as follows.

Alpha 2 Hours

Sigma 4 Hours

Ridma 3 Hours

Standard labor rate per hour is Rs. 2.00

Budgeted cash flows are as follows.

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Rs Rs Rs Rs

Receipts from customers 250000 300000 280000 246250

Payments:

Materials 100000 120000 110000 136996

Payments for wages 100000 110000 120000 161547

Other costs and expenses 30000 25000 18004 3409

Cash balance as at 31^st December 2019 was Rs.8500.

a. You are asked to prepare the sales budget, production budget, material purchase budget, direct labour budget and cash budget for the year ending 31^st December 2020.

b. Discuss the expected performance of the company at the budget committee meeting.