For revision purpose only

You have been presented with the following information by the Budget Committee of the organisation in which you work:

Sales forecast January - April 2017

Details	T-Squares	Dividers
Expected selling price per unit	$300	$500
Sales Volume forecast:
January	2 000 units	1 000 units
February	2 500 units	1 500units
March	3 000 units	1 000 units
April	2 000 units	1 200 units

Additional information:

(i) Beginning inventories: T-squares 300 units; Dividers 200 units.

(ii) The ending inventory for each product at the end of each month is to be maintained at 20% of the budgeted sales for the next month.

(iii) At the start of January 2017 there are 700 T-squares and 300 dividers on hand.

(iv) To make one T-square, four (4) units of raw material lumber are used, while five (5) units of raw material aluminium are used to make one divider.

Required:

(a) The Sales Budget for both products for January to March 2017. (7 marks)

(b) The Production Budgets for both products for January to March 2017. (20 marks)

(c) The Direct material usage budget. (3 marks)