CUCK HERE TO SAVE YOUR WORK A37 A A sales budget is given below for one of the products, the G400 which is manufactured by Hasta Brothers Ltd 4 5 January 25,000 units 6 February 40 000 units 7 March 65.000 units 8 April 45,000 units 9 May 35,000 units 10 June 30,000 units 11 12 The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on 13 December 31, the finished goods inventory totalled only 4,000 units. 14 15 Each unit of the product (G400) requires three kilograms of specialized material which costs $5.25 per kg Since the availability of the material 16 is sometimes irregular, the company has a policy of maintaining a materials ending inventory at the end of each month equal to 17 30% of the next month's production needs. This requirement had been met on January 1 of the current year 18 19 Required: 20 21 1. Prepare a Production budget showing the number of G400 units to be produced in each month for January, February 22 and March (12 marks) 23 24 January February March April 25 Budgeted sales (units) 25,000 40,000 65,000 45,000 26 Add Desired Ending finished goods 8.000 13.000 9.000 2.000 Deduct Beginning fushed goods 27 4,000 8,000 13,000 9,000 28. Required Material purchases (kg) 29.000 45.000 61.000 45.000 19 Instructions SECTION 2 SECTION SECTION 4 SECTION 5 SECTIONG New DELL 23.000 28 Required 29 1.1 30 31 2. Prepare a Material purchases budget showing the required quantity of materials to be purchased and the purchases 32 costs in each month for January February, March and the Quarter total (13 marks) 33 34 January February March Quarter 35 Production needs 36 Cost per kg of material 37 38 39 40 41 42 43 44 14 Instructions SECTION 2 SECTION SECTION 4 SECTION 5 SECTION New DOLL