QUESTION $4$

$4\mathrm{.}1$ A cost and management inventory report for a company manufacturing electric

toothbrushes is shown below for year ending $31$ December.

Quarter Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$

Expected sales $5006008001000$

Desired ending inventory $20\%$ of next quarter sales

Beginning inventory $0???$

Material required per unit $4$ kg @ R$30$ per Kg

Desired ending material

inventory

$20\%$ of the next quarter$$s material needs

Labor $1\mathrm{.}5$ hours @ R$90$ per hour

Variable manufacturing

overhead cost

R$20$

Fixed manufacturing

overhead cost

R$50000$

$4\mathrm{.}1\mathrm{.}1$ Prepare the production budget for the company and present your answer in a

table given estimated sales of $400$ units in quarter $1$ and $800$ units in quarter

$2,$ for year $2.(6)$

$4\mathrm{.}1\mathrm{.}2$ Prepare a direct material budget for the company. $(9)$

tip: calculate the units to be produced for quarter $1$ of year $2$ first.

$4\mathrm{.}1\mathrm{.}3$ Prepare a direct labour budget for the company. $(3)$

$4\mathrm{.}1\mathrm{.}4$ Prepare a manufacturing overhead budget for the company. $(3)$

$[21]$