TH ACCTN mark The Coco Company has the following budgeted sales for the next 6-month period: Question 3 mark Cash Month June July August September October Unit Sales 90.000 120 000 210 000 150 000 180 000 120 000 November There were 30 000 units of finished goods in stock at the beginning of June. Plans are to have closing stock of finished products that equal 20% of the unit sales for next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $8. Stock levels for materials are equal to 30% of the needs for the next month. Material in stock on June I was 15.000 kilograms. Required: A. Prepare production budgets in units for July, August and September. (6 marks) B. ks) ks) ks) C. D. Outline FOUR (4) limitations of budgeting. s) s) Prepare a Purchases budget, in kilograms, for July, August and September, showing total purchases in BOTH kilograms and dollars for each month. (12 marks) Briefly explain, to your management team, FOUR (4) benefits that can be derived from budgeting. (6 marks) (6 marks) (Total 30 marks) ACCT3603