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Plagued Engineering Ltd has recently completed its sales forecast for the year ending 31 December 2022. It expects to sell two products, Product A

Plagued Engineering Ltd has recently completed its sales forecast for the year ending 31 December 2022. It expects to sell two products, Product A and Product B, at the prices R135 and R145 respectively. Sales demand is expected to be as follows: Product A 10 000 units Product B 6 000 units Both products use the same raw materials and labour but different quantities per unit. Product A Product B Material X Material Y Labour 10 kg 4 kg 6 hours The prices expected during 2022 for raw materials are: Material X R1.50 per kg Material Y R4.00 per kg The labour rate is expected to be R6.00 per hour. Product A Product B Stocks of raw materials and finished goods in 1 January 2022 is as follows: Material X 400 kgs Material Y 200 kgs 4 kg 8 kg 4 hours 600 units 800 units REQUIRED Stocks of raw materials and finished goods in 31 December 2022 is as follows: Material A 85% of opening the inventory Material B 85% of the opening inventory Product 1 Product 2 Overheads costs are R2.00 per labour hour. 85% of the opening inventory 85% of the opening inventory Prepare the following for the year ending 31 December 2022: 1. Production budget 2. Raw material usage budget 3. Raw material purchases budget (kgs and rands)

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