Question 5 (8 marks)

ABC company produces and selling a single product. The following information relates to their budgeted operations for the 2023 financial year.

Sales	Period	Units
	Quarter 1	42 000
	Quarter 2	48 000
	Quarter 3	33 000

A closing inventory of 15% of the next periods sales is required. The forecast sales for Quarter 4 are 36 000 units. From the companys history it was observed that the sales units for Quarter 4 of any year are the same.

The standard material cost of one unit of nished product is:

Cost per Unit produced	N$
Assembly Department (N$ 8 per kilo)	24
Finishing Department (N$ 10 per kilo)	20

REQUIRED:

5.1 Prepare the Direct Material Budget, in hours and in N$, for both Departments for each of the Quarter 1 [8]