Wollongong Ltd manufactures one product. The budgeted sales for the coming year are for 10,000 units at a selling price of 100 per unit. Other details are as follows: 1. Two components are used in the manufacture of each unit: Component Number Unit cost of each component () 1 XY WZ 5 3 0.50 2. Stocks at the beginning of the period are expected to be as follows: 4,000 units of finished goods at a unit cost of 52.50 Component XY: 16,000 units at a unit cost of 1 Component WZ: 9,600 units at a unit cost of 0.50 3. Two grades of employees are used in the manufacture of each unit: Employee Hours per unit Labour rate per hour () Production 4 5 Finishing 2 7 4. Factory overhead is absorbed into unit costs on the basis of direct labour hours. The budgeted factory overhead for the period is estimated to be 96,000. Page 2 of 5 5. The administration, selling and distribution overhead for the period has been budgeted at 275,000. 6. The company plans a reduction of 50% in the quantity of finished stock at the end of the year, and an increase of 25% in the quantity of each component Required: Prepare the budgeted profit and loss account for Wollongong Ltd