Question

Q No. 4 Mehra food product Ltd. has prepared the following sales budget for the first five months
of 2020:
Sales Budget
(in Units)
January
10500
February
15000
March
12000
April
10800
May
10500
The inventory of finished products at the end of every is to be equal to 25% of the sales estimate for the
next month. In January 2020, there were 3700 units of product on hand. There is no work in progress at
the end of any month.
Every units of product requires two types of materials in the following quantities:
Material
A А
4 kg.
Material
В B.
5 kg
Materials equal to one half of the next month's production are to be in hand at the end of the every
month. This requirement was met on 1 January, 2020.
Budgeted prices for the purchase of materials are:
Material A
Rs. 5 kg.
Material B
Rs. 4 kg.
Prepare:
1.
Production Budget from January to April.
Material purchase budget (in units and cost) from January to March.
25 Marks​

Answer 1

Explanation:

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