Vangor Ltd produces two products -X and Y. The following estimates have been prepared for product X and Y and its related unit cost. Product X Y Material A 5 kg @ $2.00 per kg 8 kg @ $2.00 per kg Material B 4 kg @ $1.20 per kg 9 kg @ $1.20 per kg Direct labour 3 hours @ $3.00 per hr |2 hours @ $3.00 per hr Selling prices $50.00 per unit $ 80.00 per unit Budgeted sales 8,000 units 10,000 units Opening stocks of finished 1,000 units 2,000 units goods The company plans to increase the stocks of finished goods, so that the closing stock of product X will be 2,000 units and the closing stock of product Y will be 3,000 units. Direct materials stocks are budgeted as follows: Material A Material B Opening stocks 12,000 kg 15,000 kg Required closing stocks 19,000 kg 15,000 kg (a) From the information above you are required to prepare the following budgets: Sales Budget (in quantity and value) (ii) Production Budget iii) Material usage Budget (in quantities) (iv) Material purchases budget (in quantity and value) (V) Labour Budget (utilisation and cost) (20 marks) (b) Budgetary control is an essential element of budgeting. Explain how the terms below help an organisation in achieving the effectiveness and efficiency of an organisation both in the short term and long term: () Budgetary control. (ii) Fixed and flexible budgets. (6 marks) (c) Name and explain four benefits of budget