The Sukova Company manufactures and sells two products, Gadget 1 and Gadget 2. The budget department gathered the following data for the year ending 30 June.

Product	Projected Sales		Inventory in units
	Units	Price	Opening	Closing
Gadget 1	6000	60	2000	2500
Gadget 2	4000	90	800	900

To produce one unit of Gadget 1 and Gadget 2, the following materials are used.

Raw Material	Unit	Gadget 1	Gadget 2
A	Kg	3	4
B	Kg	2	3
C	Each	0	1

               

Projected data in respect of raw material are as follows:

Raw Material	Cost	Opening Inventory	Closing Inventory
A	$7	3,200 kg	3,600 kg
B	$4	2,900 kg	3,200 kg
C	$3	600 each	700 each

 

Projected data in respect of direct labour rates are as follows:

Project	Hours per unit	Rate Per hour
Gadget 1	3	$14
Gadget 2	2	$15

Overhead is applied at the rate of $3 per direct labour hour

• Prepare a production budget (in units)
• Prepare a raw material purchase budget (in units and in dollars)
• Prepare a budget of manufacturing cost, by product and in total