a) A company manufactures three products, A, B and C. It is expected that sales quantities...

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a) A company manufactures three products, A, B and C. It is expected that sales quantities are likely to be 3 000 units, 4 000 units and 5 000 units respectively. The selling prices calculated for each of the products are R100, R80 and R70 respectively. Prepare the sales budget. b) Using the data from a), prepare the production budget assuming that the opening inventories of products A, B and C are 1 000 units, 500 units and 750 units respectively and the company plans a 10% increase in finished goods inventory at the end of the period. c) Using the data from a) and b) as well as the additional information below, prepare a materials usage budget assuming that products A, B and C use materials alpha and beta to produce the three products. The opening inventory levels for alpha and beta are 500 units and 1000 units respectively and the company plans to increase the closing inventory to 2 000 units of alpha and 1 750 units of beta. Materials used in manufacturing the products are as follows: Quantity per unit: Product A Product B Product C Product A Product B Product C Alpha Assemblers R6/hour 5 2 2 d) Using the materials usage budget prepared for Question c), prepare the materials purchases budget assuming that the unit costs of alpha and beta are R2 and R3 respectively. 5 hours 2 hours 1 hour e) Using the production budget prepared for Question b) and the information given below, prepare the direct labour budget assuming that two categories of labour are used: assemblers and finishers. The standard times per unit and budgeted standard unit rates are as follows: Beta 2 1 3 Variable overheads cost: R2 per direct labour hour Fixed overheads cost: R1 per direct labour hour Finishers R7/hour hours 2 3 hours 3 hours f) Using the production budget prepared for Question b) and the information below, prepare the manufacturing overheads cost budget assuming that the predetermined overhead rates are as follows: g) Using the information given and budgets prepared for Questions a) to f), calculate the cost per unit for products A, B and C. h) Using all the information given in Questions a) to g) and the solutions to these questions, prepare a cost of sales budget for the period. a) A company manufactures three products, A, B and C. It is expected that sales quantities are likely to be 3 000 units, 4 000 units and 5 000 units respectively. The selling prices calculated for each of the products are R100, R80 and R70 respectively. Prepare the sales budget. b) Using the data from a), prepare the production budget assuming that the opening inventories of products A, B and C are 1 000 units, 500 units and 750 units respectively and the company plans a 10% increase in finished goods inventory at the end of the period. c) Using the data from a) and b) as well as the additional information below, prepare a materials usage budget assuming that products A, B and C use materials alpha and beta to produce the three products. The opening inventory levels for alpha and beta are 500 units and 1000 units respectively and the company plans to increase the closing inventory to 2 000 units of alpha and 1 750 units of beta. Materials used in manufacturing the products are as follows: Quantity per unit: Product A Product B Product C Product A Product B Product C Alpha Assemblers R6/hour 5 2 2 d) Using the materials usage budget prepared for Question c), prepare the materials purchases budget assuming that the unit costs of alpha and beta are R2 and R3 respectively. 5 hours 2 hours 1 hour e) Using the production budget prepared for Question b) and the information given below, prepare the direct labour budget assuming that two categories of labour are used: assemblers and finishers. The standard times per unit and budgeted standard unit rates are as follows: Beta 2 1 3 Variable overheads cost: R2 per direct labour hour Fixed overheads cost: R1 per direct labour hour Finishers R7/hour hours 2 3 hours 3 hours f) Using the production budget prepared for Question b) and the information below, prepare the manufacturing overheads cost budget assuming that the predetermined overhead rates are as follows: g) Using the information given and budgets prepared for Questions a) to f), calculate the cost per unit for products A, B and C. h) Using all the information given in Questions a) to g) and the solutions to these questions, prepare a cost of sales budget for the period.