Answer Happy

Roger Manufacturing
makes and sells a product, IVIEGA B, to corporate organisations.
For the upcoming quarter, the company has the following budgeted
sales units and selling price per unit:
Sales (units)
Selling price (unit)
July
50 000
$100
August
40 000
$100
September
60 000
$100
The company uses
material MG to produce IVIEGA B. Each unit of NIEGA B requires 2
pounds of MG at a cost of $15 per pound.
It takes 4 hours of
direct labour to produce one unit of VIEGA B, at a rate of $12 per
hour.
Inventories at June
30 and September 30 are as follows:
June 30
September 30
(pounds)
(pounds)
Raw materials (MG)
9 600
12 000
Finished goods (MEGA B)
10 000
12 000
Company policy
states that:
Total sales were $4
000 000 and $5 000 000 in May and June, respectively
Cash collections are
as follows:
1. 40% of all sales
is collected in the month of sale
2 50% of all sales
is collected in the first month following sale
Prepare the
following budgets for the quarter ending September 30:
i. Sales (S)
(3 marks)
ii. Production (units)
(9 marks)
iii. Direct material purchases (S)
(12 marks)
iv. Direct labour
(6 marks)