F$.$ BUDGETING $(16$ Marks$)$

The RJ Lee Company is preparing budgets for the $2$ nd quarter, which ends on June $30.$

Budgeted sales of the company's only product for the next five months are:

$\backslash$table$[[$April$.....,20,000$ units$],[$May $.....,50,000$ units$],[$June $....,30,000$ units$],[$July $.....,25,000$ units$],[$August$..,15,000$ units$]]$

The company desires to have inventory on hand at the end of each month equal to $20\%$ of the following month's budgeted unit sales

On March $31,4,000$ units were on hand

$5$ kilograms of material are required per unit of product.

Management desires to have materials on hand at the end of each month equal to $10\%$ of the following month's production needs.

The beginning materials inventory was $13,000$ kilograms.

The material costs $$0\mathrm{.}40$ per kilogram

Prepare the Production Budgets for April, May, June, & July $(8$ marks$)$

Prepare the Production FULL $2$ QUARTER DIRECT MATERIALS BUDGET