QUESTION Following information has been extracted from the books of Noor Company and the information is related to manufacturing of a product named XYZ. Following sales budget in units has been estimated based on region clientage. January February March East Region 200 150 300 West Region 500 600 North Region 500 650 550 700 According to company policy, following will be the Finished Goods inventory in units. January 1 1,500 January 31 1,400 February 28 1,300 March 31 1,700 Following material (A, B and C) and labor costs were added to manufacture XYZ. Material A 2 kg @ Rs. 6 per kg (for manufacturing 1 unit) Material B 10 pieces @ Rs. 2 per piece (for manufacturing 1 unit) Material 1 liter @ Rs. 10 per liter (for manufacturing 1 unit) 4 hours were required labor hours to manufacture a unit at rate Rs. 250 per hour Required: a) Do you think that any change in the desired finished goods inventory on January 1 will affect the production requirement for the month of January, February and March? Justify the answer. b) How production requirement for the month of January, February and March will be affected due to decrease in desired finished goods inventory on January 31. Provide justification with your answer. No working is required c) Describe which functional budget(s) will be affected due to decrease in desired finished goods inventory on January 31 and how the change will reflect in the Master Budget. d) At the end of the first quarter, it was observed that there was difference in obtained results with budgeted amount. It was reported that desired finished goods inventory on January 31; was 1,000 units but not 1,400 units. Prepare the direct material cost budget for the month of February. Provide complete working in proper format

Discuss the affect in particular direction as mentioned in part (b) and (c) on monthly basis and quarterly as well. Recall the concept of production budget while commenting on part (a), (b) and (c)

NOTE: Discuss the affect in particular direction as mentioned in part (b) and (c) on monthly basis and quarterly as well. Recall the concept of production budget while commenting on part (a), (b) and (@ IMPORTANT: Grace period of extra 24 hours after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience. IMPORTANT INSTRUCTIONS Take help from internet for collecting the information. Carefully watch relevant lectures and consult the relevant material from handouts along with recommended books. Attempt the assignment by yourself and it will be entertained positively. OTHER IMPORTANT INSTRUCTIONS: DEADLINE: Make sure to upload the solution file before the due date on VULMS. Any submission made via email after the due date will not be accepted. FORMATTING GUIDELINES: Use the font style Times New Roman or Arial and font size 12. It is advised to compose your document in MS-Word format. You may also compose your assignment in Open Office format. Use black and blue font colors only