Charles Thomas

Question No 4 (8 marks) GH Bros. is engaged in manufacturing cosmetic products and prepared the following information as a basis for its 2019 Budget. Products | Expected sales Sale price per Per unit material required for use in unit production of units sold Material A Material B X 160000 units Rs. 250 1 kg 2 kg Y 80000 units 150 2 kg 1.5 kg Z 200000 units 100 0.5 kg NIL Estimated inventories at the beginning and desired quantities at the end of 2019 are: Material Beginning Ending Price per kg (same price for material required for use in production) A 20000 kg 24000 kg Rs. 40 B 24000 kg 30000 kg 20 Products Beginning Ending X 10000 units 12000 units Y 8000 units 4000 units Z 20000 units 16000 units Sales information according to cities X Y Z Rawalpindi 20% 40% 50% Islamabad 50% 40% 20% Lahore 30% 10% Remaining Required: Prepare sales budget, production budget, also calculate cost of raw material