Active Ltd manufactures and sells two products, NP and SP. The company wants to prepare budgets for the quarter January to March 2020. The following forecasts are made for this purpose.

(i) Finished goods

                           

	NP units	SP units
Budgeted sales	5,250	1,200
Inventory on 1 January	600	150
Inventory on 31 March	300	450
Budgeted selling price (TZS)	50,000	85,000

 (ii) Production details:

                                 

	Alpha	Beta
Direct material required per unit of finished goods
NP	5 kg	3 kg
SP	2 kg	4 kg
Opening inventory	8,100	Nil
Closing inventory	Nil	5,000

Required:

As a management accountant, you are required to calculate the following budgets for the quarter ended on March 2020:

Sales budget

Production budget

Material purchase budget

Answer rating: 100% (QA)

Step 1 of 2 Sales Budget Particulars NP Units SP units Budgeted Sales 5250 1200 Budgeted Sel... View the full answer