SECTION A (40 marks) Answer both questions in this section. QUESTION 1 (20 marks) Anotenten Company Limited produces a single product which uses three different raw materials. The product details are given below: Selling price is GHC250 per unit of the product Material X required per unit of output is 3 kg @ GHC3.5 per kg Material Y required per unit of output is 2 kg @ GHC5 per kg Material Z required per unit of output is 4 kg @ GHC4.5 per kg Direct labour hours required per unit of output is 8 hours @ GHCS per hour The company is considering its budgets for next year and has made the following estimates of sales demand for the product for April to July April May June July 400 units 300 units 600 units 450 units It is the company's policy to hold stocks of finished goods at the end of each month equal to 50% of the following month's sales demarid, and it is expected that the stock at the start of the budget period will meet this policy. Raw material stocks are expected to be us foliows on 1 April: Material X 1,000 kg Material Y 400 kg Material Z 600 kg Closing stock of each raw material is 20% over the opening stock. Labour is paid on an hourly rate based on attendance. In addition to the unit direct labour shown above, 20% of attendance time is spent on tasks that support production activity. Required 4 marks Prepare the following budgets for the quarter ending 30th June: a. Sales budget in quantity and value. b. Production budget in units c. Raw material usage budget in kilogram d. Raw material purchase budget in kilogram and value e. Labour budget 4 marks 4 marks 4 marks 4 marks