Q.No.3. (Marks 6)

The Enterprise Company manufactures two products, known as Odds and Ends. Odds are produced in department 1 and Ends in department 2. The following information is available for 1992.

Material A	$16 per unit	-	Variable overhead rates (PDLH)	Odds ($)	Ends ($)
Material B	$7.2 per unit	-	Indirect materials	0.80	1.2
Direct Labor	$12 per hours	-	Indirect labor	1.2	1.2
Material A	9 units (Odds)	5 units (Ends)	Power (Variable)	0.40	0.60
Material B	8 units (Odds)	10 units (Ends)	Maintenance (Variable)	0.40	0.20
Direct Labor	15hours (Odds)	10hours (Ends)	Fixed overheads
Budgeted sales	1600units (Odds)	8500units (Ends)	Depreciation	80,000	100,000
Selling Price	$560 per unit (Odds)	$400 per unit (Ends)	Supervision	40,000	100,000
Ending inventory required Fig.	90 units (Odds)	1870units (Ends)	Power (Fixed)	2000	40,000
Opening inventory required Fig.	85units (Odds)	170units (Ends)	Maintenance (Fixed)	3196	45,600
Opening inventory	8000 units (A)	8500 units (B)
Closing Inventory	1700 units (A)	10200units (B)

Fixed Assets: Land $170,000, Building and Equipment $ 1292,000 ( $255000 Depreciation included)

Current Assets: Finished goods $99,076, Raw Material $189,200, A/R $289,000, Cash $34,000

Liabilities and Owners Equity: A/P $248,800, Reserves $369,476 Represented by shareholders interest: 1200,000 ordinary share $1 each.

Non manufacturing overheads: Stationery (office) $ 3000, Stationery (Sales) $1000, office salary $30,000, Sales salary $ 72,000, commission $62,000, Car expenses (sales) $20,000, Advertisements $78,000 and Misc. (Office) 10,000

Details	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Payments:	$	$	$	$
Materials	400,000	480,000	440,000	547984
Wages	400,000	440,000	480,000	646,188
Other Costs	120,000	100,000	72,016	13,642
Receipts from Customers (000)	1000	1200	1120	985

You are required to prepare master budget for the year 1992 and following budget: 1) Sales Budget 2) Production budget 3) Direct material consumed budget 4) Direct material purchase budget 5) Direct labor budget 6) FOH budget 7) Selling and administration budget 8) Departmental budget 9) Cash Budget 10) Master Budget.