df (84.3 KB) Junction Ltd has the following budgeted sales for the selected four-month period: Unit Sales 20,000 35,000 25,000 30,000 onth ugust September Sales price per unit is $180 Plans are to have an inventory of finished product equal to 20% of the unit sales for the next month. There was 4,000 units in beginning inventory on July 1st Three kilograms of materials are required for each unit produced. Each kilogram of material costs $20. Inventory levels for materials equal 30% of the needs for the next month Desired ending inventory for September is 25.200 kilograms of material. Beginning inventory for July was 20,700 kilograms of material. Each unit requires 0.6 hours of direct labour and the average wage rate is S16 per hour. Variable overhead rate is $3.50 per direct labour hour. There is also fixed overhead of S22,000 per month The company pays a 3% commission on sales Company has fixed selling and administrative expenses as follows: Rent Utilities Advertising S6,000/month S1,200/month $400/month