Coleraine Plc manufactures Product Omega at its factory in Portrush, Northern Ireland. Its Management Accountant has been asked to prepare budgets for the next three months, June to August 2016. Product Omega has the following cost details: Direct material A Direct material B Direct labour Variable production overhead Fixed production overhead Forecast sales units for the next four months are expected to be as follows: Month August September Sales Units 105,000 34,500 (ii) You have been provided with the following additional information: (1) (iii) 3 kilos at 10.50 per kilo 4 kilos at 13.50 per kilo 1.50 hours at 15 per hour 7.50 per unit 9 per direct labour hour June 60,000 (iv) July 67,500 31.50 54.00 22.50 7.50 13.50 129.00 Opening stock of finished goods must be equal to 20% of the following month's sales units. Closing stock in August must be equal to 10% of September sales units. Opening stocks of finished goods in June 2016 are expected to be 3,000 units with a value of 387,000. Opening stocks of Material A and B in June 2016 which will be bought in at the end of May 2016 at the prices noted above per kilo and are expected to be 18,000 kilos and 15,000 kilos respectively. These prices are not expected to change during the budget period. Opening stocks of Material A and B will remain at the same level as at the start of June 2016. The hourly labour rate noted above will apply throughout the period of three months. (1) Production Budget in units (i) Material usage budget (for A & B) in kilos (i) Production Budget in money terms. (v) (vi) Required (a) Prepare the following budgets for June, July and August 2016 and in total for the three month period: 12 Marks Calculate the monetary value of the Closing stock of finished goods at the end of August 2016 and the value of cost of sales for the three month period. (b) (c) Identify and explain six benefits of a budgetary control system. 5 Marks 8 Marks