The sales team at Joel Brown Manufacturing Company Ltd decided on the following sales forecast for the months indicated. The company produces two products Clam and Glam Sales Forecast 2016 Details Clam Glam July 3,000 units 4,000 units August 3,500 units 4,500 units September 4,000 units 3,800 units October 2,800 units 3,200 units November 3,400 units 3,000 units December 4,200 units 4,600 units Notes: (i) To make one unit of Clam three (3) units of raw material Z508 is used. One unit of Z508 costs $80. Glam uses two (2) units of raw material K500 which costs $60 each.

The company has decided that raw material stocks at the end of each month should be held equivalent to fifteen percent (15%) of the budgeted sales for the month in question.

(iii) During the year, the company sold one unit of Clam for $220, while one unit of Glam was sold for $300.

(iv) The decision was made that at the end of each month there should be in store sufficient finished goods stock to meet thirty percent (30%) of the sales for the next month.

Required:

Prepare the companys sale budget for the period August to November 2016. (6 marks)

(b) Prepare the production budget for both products for the period August to November 2016. (10 marks)