$3\mathrm{.}1$

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 inductry. The sales budget for three months of $2024$ shows the followining projections:

Months Units

August $90000$

September $100000$

October $120000$

Addition

# the desired quantity of finishes goods inventory at the end of each months 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 extimated as follows:

Cost July August September

direct materials R$10$ R$11$ R$12$

direct labour R$8$ R$8$ R$8$

overheads R$4$ R$5$ R$5$