Royal Company is preparing budgets for the quarter ending June 30, 2018. Budgeted sales for the next five months are:  April 20,000 units  May 50,000 units  June 30,000 units  July 25,000 units  August 15,000 units. The selling price is Rs.100 per unit.  Royal Company wants ending inventory to be equal to 20% of the following month’s budgeted sales in units.  On March 31, ___?___ units were on hand.  At Royal Company, five pounds of material are required per unit of product.  Management wants materials on hand at the end of each month equal to 10% of the following month’s production.  On March 31, __?___ pounds of material are on hand. Material cost Rs.5.00 per pound. Required: M-06 Prepare Sales Budget, Production Budget and Direct Material Budget (in pounds and Rupees both) for the quarter ending June 30, 2018.

Answer rating: 100% (QA)

a 31 May 2018 ending inventory 20 x April expected sales 020 x 20 000 4 000units b Materials o... View the full answer