$3\mathrm{.}1$

REQUIRED

Study the information given below and prepare the following for August and September $2024$:

$3\mathrm{.}1\mathrm{.}1$ Production Budget

$(6$ Marks$)$

$3\mathrm{.}1\mathrm{.}2$ Cost of Sales Budget

$(6$ Marks$)$

INFORMATION

Pandu Limited produces components for the motor industry. The sales budget for three months of $2024$

shows the following projections:

Additional information

The desired quantity of finished goods inventory at the end of each month equals $30\%$ of the next month's

budgeted units sales.

The first$-$in$-$first$-$out method is used to value inventories.

Manufacturing costs per unit from July to September $2024$ were estimated as follows: