X Berhad manufactures Product X using three different raw materials. The product details are as follows:

Selling price per unit $250

Material A3 kgsmaterial price $3.50 per kg

Material B2 kgsmaterial price $5.00 per kg.

Material C4 kgsmaterial price $4.50 per kg.

Direct labor 8 hours labor rate $8.00 per hour

The company is considering its budgets for next year and has made the following estimates of sales demand for Product X for July to October:

JulyAugustSeptemberOctober

400 units 300 units600 units450 units

It is company policy to hold stocks of finished goods at the end of each month equal to 50% of the following month's sales demand, and it is expected that the stock at the start of the budget period will meet this policy.

At the end of the production process the products are tested: it is usual for 10% of those tested to be faulty. It is not possible to rectify these faulty units.

Raw material stocks are expected to be as follows on 1 July:

Material A1,000 kgs

Material B4,000 kgs

Materiala C600 kgs

Stocks are to be increased by 20%in July, and then remain at their new level for the foreseeable future. Labor is paid on an hourly rate based on attendance. In addition to the unit direct labor hours shown above, 20% of attendance time is spent on tasks which support production activity.

Requirements:

Prepare the following budgets for the quarter from July to September inclusive:

1. Sales budget in quantity and value;
2. Production budget in units
3. Raw material usage budget in kgs
4. Raw material purchases budget in kgs and value
5. Labor requirements budget in hours and value.