Mr$.$ James Fresh is planning to start a fresh juice business starting from $1$ January $2023.$ It manufactures and sells one size of bottle mixed juice $($i$.$e$.$ orange and apple$)$ only. Its financial year ended is $31$ December. In order to have a good plan, Mr$.$ Fresh is preparing its annual budgets for the year ended $31$ December $2023.$ Each bottle sells at a price of $$150\mathrm{.}00.$ His wife, Carol Vitamin believes that the price can be increased to $$160\mathrm{.}00$ with effect from $1$ July $2023$ and that at this price the sales volume for each quarter of $2023$ will be as follows:

Sales volume

$40,000$

$50,000$

$30,000$

$45,000$

Sales for each quarter of $2024$ are expected to be $40,000$ units.

Each bottle of the juice which is manufactured requires four oranges and three apples, together with a recycle bottle. These items are purchased from outside suppliers.

Quotation from suppliers are:

Orange

Apple

Recycle bottle

$$8\mathrm{.}00$ each

$$5\mathrm{.}00$ each

$$30\mathrm{.}00$ each

The fruits are expected to increase in price by $10$ percent with effect from $1$ April $2023$; no change is expected in the price of the bottle.

Blending and bottling require $6$ labor hours: labor cost is expected to be $$5\mathrm{.}00$ per hour. A $4$ percent increase in wage costs is anticipated to take effect from $1$ October $2023.$

Variable overhead costs are expected to be $$10\mathrm{.}00$ per unit for the whole of $2023$; Annual fixed production overhead costs are expected to be $$228,150$ for the year, and are absorbed on a per unit basis.

Selling and administrative costs in quarter are equated at $$264,000+8\%$ of revenue.

Closing stocks at the end of each quarter are to be as follows:

Finished units

Orange

Apple

Recycle bottle

$10\%$ of next quarter's sales

$20\%$ of next quarter's production requirements

$15\%$ of next quarter's production requirements

$10\%$ of next quarter's production requirements

$2$

Required:

Show ALL workings.

Part I

Prepare the following budgets of Fresh Juicy Limited for the year ending $31$ December $2023,$ showing values for each quarter and the year in total:

a$.$ Sales budget schedule $($in dollars and units$)$

b$.$ Production budget schedule $($in units$)$

c$.$ Material usage budget schedule $($in units$)$

d$.$ Production cost budget schedule $($in dollars$)$

$(5$ marks$)$

$(15$ marks$)$

$(15$ marks$)$

$(50$ marks$)$

Part II

a$.$ Determine the product variable cost per unit $($nearest to dollars$).$

$(2$ marks$)$

b$.$ Prepare a contribution budgeted income statement for the year ended $31$ December $2023$