Question 1:

Part A

The Jungle Corporation budget calls for the following production:

Q145,000 units

Q238,000 units

Q334,000 units

Q448,000 units

Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter's direct material requirements.

Compute budgeted direct materials purchases for the third quarter.

PART B (8 marks)

Blurt Company's budget for the month just ended called for producing and selling 5,000 units at $8 each. Actual unit produced and sold were 5,200, yielding revenue of $ 42,120. Variable costs were budgeted at $3 per unit and fixed costs were budgeted at $2 per unit. Actual variable costs were $3.30 and fixed costs were $ 12,000.

Required:

a)Prepare performance report for the current month's operation.

b)Write short memo analysing the current month's performance.