Answer Happy

Use the information below to answer questions that follow:
Boko (Pty) Ltd have the following
information in their books, which they want to use for planning
purposes.
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Budgeted Sales in units
50,000
70,000
90,000
120,000
Desired
ending
inventory of
10,000
14,000
18,000
24,000
finished goods
Opening
inventory
of finished
7,000
10,000
14,000
18,000
goods
Direct labour hour used per unit
0.5
0.5
0.5
0.5
Selling Price
10
10
10
10
Direct labour cost per hour
3
3
3
3
Required:
a) For each quarter, calculate the:
i.
Sales
budget.
(4 marks)
ii.
Production
budget.
(8 marks)
iii.
Direct labour budget.