Chitukuko Ltd wishes to calculate an operating budget for the forthcoming period for its third facory. Information regarding products, costs and sales for the two products produced there is as follows:

 

Product                         Materials required:		A	B
X (kg)		2	3
Y (litres)            Labour hours required:		1	4
Skilled hours		4	2
Semi-skilled hours		2	5
Sales units		2,000	1,500
Opening inventories of finished units        100			200

 

Opening inventory of raw material X was 300 kg and for material Y was 1,000 litres. Material prices are K10 per kg for material X and K7 per litre for material Y. labour costs are K12 per hour for the skilled workers and K8 per hour for the semi-skilled workers. The selling price per unit of product A is K120 while product B is K140 per unit.

 

Closing inventory of raw materials and finished goods will be sufficient to meet 10% of demand.

 

You are required to prepare:

 

Sales budget (units and kwacha)

Production budget (units)

Materials usage budget (kg and litres)

 

Materials purchases budget (kg, litres and kwacha)

Labour budget (hours and kwacha)