British Beverages bottles two soft drinks under licence to Cadbury Schweppes at its Manchester plant. Bottling at this plant is a highly repetitive, automated process. Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped and heated (to reduce condensation). The only stock held is either direct materials or else finished goods. There is no work in progress.

The two soft drinks bottled by British Beverages are lemonade and diet lemonade. The syrup for both soft drinks is purchased from Cadbury Schweppes. Syrup for the regular brand contains a higher sugar content than the syrup for the diet brand.

British Beverages uses a lot size of 1000 cases as the unit of analysis in its budgeting. (Each case contains 24 bottles.) Direct materials are expressed in terms of lots, where one lot of direct materials is the input necessary to yield one lot (1000 cases) of beverage. In 2022, the following purchase prices are forecast for direct materials:

The two soft drinks are bottled using the same equipment. The equipment is cleaned daily, but it is only rinsed when a switch is made during the day between diet lemonade and lemonade. Diet lemonade is always bottled first each day to reduce the risk of sugar contamination. The only difference in the bottling process for the two soft drinks is the syrup.
Summary data used in developing budgets for 2022 are as follows:

Required

Assume British Beverages uses the first-in, first-out (FIFO) method for costing all stock. On the basis of the preceding data, prepare the following budgets for 2022:
1 Revenue budget (in £)
2 Production budget (in units)
3 Direct materials usage budget (in units and £)
4 Direct materials purchases budget (in units and £)
5 Direct manufacturing labour budget 6 Manufacturing overhead costs budget 7 Closing finished goods stock budget 8 Cost of goods sold budget 9 Marketing costs budget 10 Distribution costs budget 11 Administration costs budget 12 Budgeted profit and loss account.

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Lemonade Diet lemonade Syrup 1200 per lot 1100 per lot Containers (bottles, caps, etc.) 1000 per lot 1000 per lot Packaging 800 per lot 800 per lot