The management accountant of Mega Ltd, a local manufacturing firm, is currently preparing the operating and financial budgets for the year ending 30 June 2021 for discussion and approval in the next board meeting in June 2020. She has just collected the following budgeted financial data from various departmental managers and would like to seek your assistance in preparing some of the budgets:

1)Selling price per unit:

Product X

$4,000

Product Y

$9,000

2)Sales demand:

Product X

1,000 units

Product Y

500 units

3)Direct materials required per unit:

Product X

A1

B2

5 kg.

3 kg.

Product Y

2 kg.

6 kg.

4)Direct material costs:

A1

$30 per kg.

B2

$20 per kg.

5)Direct labour hours:

Product X

4 hours

Product Y

10 hours

6)Direct labour rate per hour

$90

7)Raw material inventories:

1/7/2020

30/6/2021

A1 (at $30 per kg.)

400 kg.

300 kg.

B2 (at $20 per kg.)

200 kg.

500 kg.

8)Finished goods inventories:

1/7/2020

30/6/2021

Product X

200 units

100 units

Product Y

50 units

150 units

9) Variable overhead per direct labour hour

$200

10) Fixed overhead per annum

$4,800,000

Required:

Prepare the following manufacturing budgets for the year ending 30 June 2021:

(a)Production budget (in units)(4 marks)

(b)Raw material usage and purchase budgets (in units and dollars)(6 marks)

(c)Cost of goods manufactured (in dollars)(7 marks)