From the following data, you are required to Prepare for the month of July 2013 the following budgets. (A.C.3.1, 3.2. 3.3, 3.4) (a) Production (b) Material usage (c) Purchases (d) P & L A/c for each product and in total Sales Stock of finished products at July 1, 2013 in units Product overhead () direct labour hours direct material: Stock July 1, 2013 in units 15,00,000 3,000 I 2,39,000 47,800 M 24,500 Budget data for July 2013 Product B 10,80,000 2,000 department II 2,01,300 67,100 M 20,500 16,80,000 2,500 III 3,91,200 65,200 M3 17,500 The company is introduced a new system of inventory control which should reduce stocks. The forecast is that stocks as at 31st July 2013 will be reduced as follows: Raw materials by 10% and finished products by 20%. Fixed production overhead is absorbed on a direct labour hour basis. Administration costs are absorbed by the products at a rate of 20% of production cost and selling and distribution cost is absorbed by products at a rate of 40% of production cost. Profit is budgeted as a percentage of total cost as follows: Product A 25%, Product B 12% % and product C 16 2/3 % Standard data per unit of Product direct Material M M2 M3 direct Wages department I department II department III other variable costs Price per unit A 2.00 4.00 1.00 Rate per Hour 2.50 2.00 1.50 Units 5 Hours 6 2 10 Units 10 5 Hours 2 4 20 Units 12 9 Hours 2 3 6 15