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Question 2 Liwewe Ltd makes two products, BUDU and DUBU. The following data are relevant for the year ending 31st December 2023: a. Material prices:

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Question 2 Liwewe Ltd makes two products, BUDU and DUBU. The following data are relevant for the year ending 31st December 2023: a. Material prices: Material A GHS5 per unit; Material B GHS6 per unit b. Direct labour is paid GHS9 per hour. c. Each unit of finished product requires: BUDU DUBU Material A 10 units Material B 8 units 7units 7 hours Direct labour 6hours d. Forecast sales for the year 2023 are: BUDU - 14,500 units @ GHS210 each DUBU -9,500 units @ GHS360 each e. It is estimated that there will be opening stock of 800 units of BUDU and 500 units of DUBU. f. At the end of the year 2023, the company intends holding inventory of 750 units and 900 units of BUDU and DUBU respectively. g. The Production Director estimates that the opening stock of raw materials will be 3,200 units of material A and 4,500 units of material B. h. At the end of the year 2023, the inventories of these raw materials are to be: Material A 4,500 units; Material B 2.500 units Required: Prepare all functional budgets for the year ending 31st December 2023. 9 units

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