QUESTION 5 A) A company sells product X & Y Sales for the year ended 2019 are: X: 5000 units @ 10 each Y: 3000 units @ 12 each The company expects to sell the following units in 2020: X: 6000 units @ 15 each Y: 4500 units @ 18 each Additional information: i) Budgeted opening stock X: 1000 units Y: 800 units Budgeted closing stock: X: 2000 units Y: 1500 units ii) Materials A and B are used to produce products X and Y based on the following ratio in order to produce one unit of X & Y ii) Materials A and B are used to produce products X and Y based on the following ratio in order to produce one unit of X & Y Product Material A Material B 3kg 2kg Y 2kg Ikg Purchase price 10 per Kg 12 per kg Material A Material B Opening stock 8000 5000 Closing stock 6000 3500 (iv) The company has only one grade of labour and uses 3 hours to produce one unit of X 2 hours to produce one unit of Y Labour rate would be c20 per hour Required: Prepare the following budgets for 2020 a. Sales budget [2 MARKS] b. Production budget (2 MARKS] c. Direct Material usage budget [2 marks] d. Direct Material purchase budget [2 MARKS] c. Direct labour budget [2 MARKS] B) Discuss FIVE (5) benefits of budgeting to organisations. [10 MARKS]