KIY Ltd is a manufacturing organisation that supplies a single product. The business is preparing its budgets for the year to 31^st August 2021. The opening statement of financial position (balance sheet) and budgeted cash account of the business are reproduced below.

KIY Ltd - Statement of Financial Position (Balance Sheet)

as at 31^st August 2020

1138 & Rea... * '' u' .I 79% Fixed assets (NBV) Current assets: Inventory: Direct materials Inventory: Finished goods Trade receivables Prepaid administration expenses Bank and cash accounts Current liabilities: Trade payables Accrued loan interest Net current assets: Long-term loans Capital and reserves: Ordinary shares Retained prots 240,000 6,000 23,400 75,000 3.600 3,700 1 11,700 20,000 3,500 23,500 88,200 100,000 228,200 170,000 58,200 228,200 KIY Ltd Cash and Bank Budget for the year ending 31St August 2021 E Balance Bld 3,700 Trade receivables receipts 895,000 Long-term loan 50,000 Balance c/d Trade payables payments Direct labour wages Indirect production overheads Selling and distribution costs Administration expenses Loan interest payments Taxation payments Dividend payments Fixed asset acquisitions The following further budget data and information is available to you: E 270,000 227,500 66,500 90,000 79,000 9,500 40,000 95,000 76,000 - The sales budget of KIY Ltd for the year to 315t August 2021 is for 44,000 units at 21 per unit. Trade creditors are for direct materials only. - Each nished production unit requires direct materials costing 6.00 and direct labour costing 5.00. Closing inventory of direct materials will have 13 III C)