Tutorial Question 1 (Operational budgets) BASH Ltd manufactures two products, A and B. Sales for the next year are budgeted at 7,200 units of A and 6,000 units of B. The planned selling price of A and B are S110 and 5140 respectively. Bash Ltd has an opening inventory of 1,000 units and 1,300 units of product A and B respectively. The company maintains a finished good closing inventory level equal to two month sales for each of the products. The following data is given about material required to produce A and B and other related production costs. Per unit of finished good: Litres of raw materials Litres of raw material T 10 Direct labour hours (per unit) 6hrs 8hrs s Direct Materials Desired closing inventory in litres Opening inventory in litres 13.100 14.600 12.450 21.550 Standard rates and prices Direct labour Raw material S Raw material T $4.70 per hour $1.20 per litre $2.10 per litre Production overheads - Variable Fixed $3.20 per direct labour hour $0.50 per direct labour hour Non-production overheads $128,000 Required: Prepare all the relevant functional budget and the budgeted Profil and Loss Account