Zenith Ltd. has prepared the following Sales Budget for the first five months of 2008 Month Sales Bu

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Zenith Ltd. has prepared the following Sales Budget for the first five months of 2008

Month

Sales Budget [units]

January

10,800

February

15,600

March

12,200

April

10,400

May

9,800

Inventory of finished goods at the end of every month is to be equal to 25% of sales estimate for the next month. On 1st January 2008, there were 2,700 units of product on hand. There is no work in progress at the end of any month. Every unit of product requires two types of materials in the following quantities.

Material A: 4 kg

Material B: 5 kg

Materials equal to one half of the requirements of the next month&s production are to be in hand at the end of every month. This requirement was met on 1st January 2008. Prepare the following budgets for the quarter ending on 31st March 2008

I] Production Budget & Quantity Wise

II] Materials Purchase Budget & Quantity Wise.

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