Question: 1 10 Marks Plagued Engineering Ltd has recently completed its sales forecast for the year ending 31 December 2022. It expects to sell two products,

1 10 Marks Plagued Engineering Ltd has recently completed its sales forecast for the year ending 31 December 2022. It expects to sell two products, Product A and Product B, at the prices R135 and R145 respectively. Sales demand is expected to be as follows: Product A Product B 10 000 units 6000 units Both products use the same raw materials and labour but different quantities per unit. Material X Product A 10 kg Material Y 4 kg Labour 6 hours Product B 4 kg 8 kg 4 hours The prices expected during 2022 for raw materials are: Material X Material Y R1.50 per kg R4.00 per kg The labour rate is expected to be R6.00 per hour. Stocks of raw materials and finished goods in 1 January 2022 is as follows: Material X Material Y 400 kgs 200 kgs Product A Product B 600 units 800 units Stocks of raw materials and finished goods in 31 December 2022 is as follows: Material A Material B Product 1 Product 2 85% of opening the inventory 85% of the opening inventory 85% of the opening inventory 85% of the opening inventory Overheads costs are R2.00 per labour hour. REQUIRED Prepare the following for the year ending 31 December 2022: 1. Production budget 2. Raw material usage budget 3. Raw material purchases budget (kgs and rands) Quection ?2 10 Marke

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