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XYZ company produces three products X,Y and Z. for the coming accounting period budgets are to be prepared based on following information.
Budgeted Sales
Product X 2,000 at RO 100 each
Product Y 4,000 at RO 130 each
Product Z 3,000 at RO 150 each
Budgeted usage of raw material
RM11
RM22
RM33
Product X
5
2
-
Product Y
3
Product Z
1
Cost per unit of material
RO 5
RO 3
RO 4
Finished stocks budget
Opening
500
800
700
Closing
600
1,000
Raw material stocks budget
21,000
10,000
16,000
18,000
9,000
12,000
Expected hours per unit
4
6
8
Expected hourly rate (labour)
RO 9
Required;
Draw up the following functional budgets.
a) Sales budget in terms of both quantity and value
b) Production budget
c) Material usage budget
d) Material purchases budget
e) Labour budget
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