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The accountant of Zee Limited has estimated the following sales data for six months in the financial year 20X9 June Month March April May July

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The accountant of Zee Limited has estimated the following sales data for six months in the financial year 20X9 June Month March April May July Units 200,000 250.000 375.000 450,000 525,000 Additional information: a) Zee has the policy to maintain cach month's ending inventory equal to 10% of the following month's budgeted sales. There were 25,000 units in inventory on March 31. b) Produced units are sold in the market at a unit rate of Rs. 125. c) The production cost of these units is estimated at 60% of the unit sales price. d) There has also been an estimate for operating expenses equal to 10% of the unit sales price. Required: Prepare production budget and budgeted income statement both month-wise and in total for the 2- quarter ending on June 30, 20X9. (52 Marks)

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