Lucky pizza $($Pty$)$ Ltd$.$ manufactures frozen mini$-$pizzas for a big supermarket

chain. There are $6$ frozen pizzas in a pack and the selling price for $1$ pack is

R$170.$ Based on market research and the previous year's sales, Lucky pizza

budgets to sell $30000$ packs of pizzas for the year ended $31$ December $2024.$

There are $12000$ packs of pizzas in opening inventory and Lucky wants to have

$2000$ packs in closing inventory on $31$ December $2024.$

Dough and oil are used in the manufacturing process. The dough and oil are

stored in the store room. Both ingredients are bought from Bake etc. Ltd$.,$

which charges R$10/$kg dough and R$40/$l bottle of oil. To make $6$ pizzas, you

need $750g$ dough and $500ml$ of oil. Beginning inventory of dough was $15kg$ and

Lucky pizza will need at least double that in the closing inventory at the end of

the year. The beginning inventory of oil was $4$ one$-$litre bottles which is cutting

it fine. Therefore, the production manager suggested that Lucky needs at least

$10$ bottles in the closing inventory.

It takes about $5$ minutes to make $1$ mini pizza and the hourly labour rate is R$80.$ Variable manufacturing overheads amounts to R$3$ per pack of pizzas.

Budgeted fixed manufacturing overheads amounts to R$20000$ for the year.

The cost of production for the opening inventory was R$65$ per pack of pizzas. Inventory is sold on a first$-$in$-$first$-$out $($FIFO$)$ basis.

You can assume there are no opening or closing inventory in work$-$in$-$progress

Required

a$.$ Calculate the production requirements in units for the year ended $31$ December $2024.($number of packets$)$

b$.$ Compile a materials purchases budget in rand for the year ended $31$ December $2024.$

c$.$ Calculate the budgeted cost of sales for the year ended $31$ December $2024.$

SHOW ALL CALCULATIONS CLEARLY. ANSWER IN THE SPACE PROVIDED BELOW. ONLY ANSWERS IN THIS SPACE WILL BE MARKED.

ROUND ALL CALCULATIONS TO THE NEAREST RAND