QUESTION 19 The following is the sales budget for the first six months of the year 2021 for Kabu Co ltd. I. Finished goods inventory at the end of each month is expected to be 20% of budgeted sales quantity for the following month. Finished goods inventory was 2,700 units on January 1 , 2021. There will be no work-in-progress at the end of any month. II. Each unit of finished product requires two types of material s as detailed below: Material X: 4kg @ GHS 10/kg Material Y:6kg@GHS 15/kg III. Material on hand on January 1, 2021 was 19,000kgs of material X and 29,000kg of material Y. Monthly closing stock of material is budgeted to be equal to half of the requirement of next month's production. IV. Budgeted direct labour hour per finished product is 0.75 hour V. Budgeted direct labour cost for the first quarter of the year 2021 is GHS 1,089,000. Actual data for the quarter one ended March 31, 2021 is as shown below: VI. Actual production quantity: 40,000 units VII. Direct material cost (Purchase cost based on material actually issued to production) Material X: 165,000kg@ GHS 10.2/kg Material Y:238,000kg@ GHS 15.10kg VIII. Actual direct labour hours worked: 32,000 hours IX. Actual direct labour cost: GHS 1,312,000 Required a. Prepare the following budgets: i. Monthly production quantity for the first quarter of 2021 ii. Monthly raw material consumption budget for the first quarter of 2021 iii. Material purchase quantity budget for the first quarter of 2021 QUESTION 19 The following is the sales budget for the first six months of the year 2021 for Kabu Co ltd. I. Finished goods inventory at the end of each month is expected to be 20% of budgeted sales quantity for the following month. Finished goods inventory was 2,700 units on January 1 , 2021. There will be no work-in-progress at the end of any month. II. Each unit of finished product requires two types of material s as detailed below: Material X: 4kg @ GHS 10/kg Material Y:6kg@GHS 15/kg III. Material on hand on January 1, 2021 was 19,000kgs of material X and 29,000kg of material Y. Monthly closing stock of material is budgeted to be equal to half of the requirement of next month's production. IV. Budgeted direct labour hour per finished product is 0.75 hour V. Budgeted direct labour cost for the first quarter of the year 2021 is GHS 1,089,000. Actual data for the quarter one ended March 31, 2021 is as shown below: VI. Actual production quantity: 40,000 units VII. Direct material cost (Purchase cost based on material actually issued to production) Material X: 165,000kg@ GHS 10.2/kg Material Y:238,000kg@ GHS 15.10kg VIII. Actual direct labour hours worked: 32,000 hours IX. Actual direct labour cost: GHS 1,312,000 Required a. Prepare the following budgets: i. Monthly production quantity for the first quarter of 2021 ii. Monthly raw material consumption budget for the first quarter of 2021 iii. Material purchase quantity budget for the first quarter of 2021