23 Jan Zenith Ltd. has prepared the following Sales Budge
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 9,800Inventory 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 kgMaterial B: 5 kgMaterials 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 2008I] Production Budget & Quantity WiseII] Materials Purchase Budget & Quantity Wise.
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