Kakum Ltd makes two products, Kaka and Tuba. The following data are relevant for the year Skilled Labour. c. Production overhead cost is estimated to be GHS 50,000. Selling and administration 31st December 2023: ending a. Material prices: Gari GHS4.5 per kg; Sugar GHS6 per unit b. Direct labour is paid @ GHS5.50 per hour for Unskilled Labour and GHS6.5 per hour for overhead is budgeted to be GHS 45,000. d. Each unit of finished product requires: Kaka Tuba Gari Sugar Direct labour (Unskilled) (Skilled) e. The sales director has forecast sales of Kaka and Tuba will be 3,500 and 3,500 units 5 kg 6 kg 4 hours 3.5 hours 7 kg 6.5 kg 4.5 hours 3 hours

respectively during the year 2023. f. The selling prices will be as follows: Kaka GHS150 per unit; Tuba; GHS150 per unit g. It is estimated that there will be opening inventory of 500 units of Kaka and 600 units of Tuba. h. At the end of the year 2023, the company intends holding inventory of 250 units and 600 units of Kaka and Tuba respectively. i. The Production Director estimates that the opening inventories of raw materials will be 1,500 kg of Gari and 2,000 kg of Sugar. j. At the end of the year 2023, the inventories of these raw materials are to be: Gari 2,100kg; sugar 1,300 kg k. Statement of financial position extracts for year ended 31st December 2022 are as follows: Inventory of Raw materials Inventory of Finished goods Bank balance Stated capital Retained Earnings Non- Current Assets l. The Finance Director advises that the rate of tax to be paid on profits during the year 2023 is likely to be 20%. m. It is estimated that the value of Closing inventory at the end of the period will be GHS70,000 for raw materials and 60,000 for finished goods n. 70% of sales are for cash and suppliers grant 20% credit for materials purchased, all other expenses are for cash except tax which will be unpaid by the end of the year. o. The company expects to receive investment income of GHS50,000 during the year. Required: a. Prepare all functional budgets and budgeted statement of profit or loss for the year ending 31st December 2023. b. Prepare a cash budget and budgeted statement of financial position for the year ending GHS 80,000 60,000 255,000 540,000 310,000 455,000

31st December 2023.