Question #1

The following sales information was extracted from the books of Brandon Brothers Ltd during 2021. The company produces two products, Product A and Product B

Sales forecast January- April 2021

Details	January	February	March	April	Total
Product A	2,000	1,500	2,200	2,800	8,500
Product B	1,500	1,700	1,900	2,200	7,300

Notes:

1. The ending stock of finished goods each month is to be held equal to 25% of the forecasted sales for the next month.
2. Raw material stocks at the end of each month are to be held at a level equal to thirty (30%) percent of the sales for that month. Sales for December 31, 2020 were 3,000 units for Product A and 2,600 units for Product B.
3. To make one unit of Product A, four (4) units of raw material X12 are used, while five (5) units of raw material Z100 are used to make one unit of Product B
4. During 2020 the company sold one unit of Product A for $750 and one unit of Product B for $975.
5. Budgeted sales for May 2021 were 2,400 units of Product A and 2,000 units of Product B.
6. One unit of X12 was purchased for $40; while one unit of Z100 was bought for $28.

Required:

1. The sales budget for the period January to April 2021
2. The production budget January to April 2021.
3. The direct raw materials usage budget for January to April 2021.
4. The direct raw material purchases budget for January to April 2021.