The following information has been made available from the records ofPrecision Tools Limited for the six months of 2020 (and the sales of January 2021) in respect of product X

i) The units to be sold in different months are:

July 2020 = 1,100

November 2020 = 2,500

August 2020 = 1,100

December 2020 = 2,300

September 2020 = 1,700

January 2021 = 2,000

October 2020 = 1,900

ii) There will be no work-in-progress at the end of any month

iii) Finished units equal to half the sales of the next month will be in stock at the end of every month (including June 2020)

iv) Budgeted production and production cost for the year ending 31^st December 2020 are thus:

Production (units) = 22,000

Direct materials per unit = Shs. 10

Direct wages per unit = Shs. 4

v) Total factory overheads apportioned to production Shs. 88,000

Required:

a) Production budget for the six months of 2020 (8 MARKS)

b) Summarized production cost budget for the same period (6 MARKS)