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QUESTION 2 Kokonte Ltd makes two products, Banku and Akple. The following data are relevant for the year ending 31 December 2022: a. Material prices:
QUESTION 2 Kokonte Ltd makes two products, Banku and Akple. The following data are relevant for the year ending 31" December 2022: a. Material prices: Material A GHS6 per unit; Material B GHS7 per unit b. Direct labour is paid GHS8.50 per hour. e. Each unit of finished product requires: Pad Pat 5 units 4.5 units Material A Material B 4 units 3 units Direct labour 3 hours 4 hours d. Forecast sales for the year 2022 are: Banku - 3,750 units @ GHS200 each Akple-2,250 units @ GHS350 each e. It is estimated that there will be opening stock of 400 units of Banku and 250 units of Akple. f. At the end of the year 2022, the company intends holding inventory of 375 units and 450 units of banku and akple respectively. g. The Production Director estimates that the opening stock of raw materials will be 1,600. units of material A and 2,250 units of material B. h. At the end of the year 2022, the inventories of these raw materials are to be: Material A 2,250 units; Material B 1,750 units Required: a. Prepare all functional budgets for the year ending 31" December 20
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