Maloney Manufacturing produces, Cinder Blocks. The following sales forecast for 2019 was decided on by the budget committee and presented to you the management accountant. Sales forecast

Details Cinder Blocks

December 2018 5,500

January 2019 3,200

February 2019 4,000

March 2019 7,000

April 2019 2,800

May 2019 4,400

June 2019 6,000

July 2019 5,900

Notes:

a) During 2019 the company sold one Cinder Block for $400.

b) It was decided by management that at the end of each month that there should be enough finished goods stock on hand to meet five percent (5%) of the sales for the next month.

c) Management also estimates a monthly deterioration of 30 Cinder Blocks and 10 units of aggregate. They have suggested that a provision should be made for these items deterioration in factory.

d) To make one Cinder Block three (3) units of raw material aggregate are used, which cost $20 per unit.

e) Raw materials stock in units at the end of each month is to be held at a level equal to ten percent (10%) of the forecasted sales for the next month.

Required:

For the period, April 2019 to June 2019 prepare the following:

(a) The companys sale budget. (6 marks)

(b) The production budget for both products. (16 marks)

(c) The direct raw materials usage budget for both products. (8 marks)