Byron Bay Surf Company has the following budgeted sales for the next six-month period: Month...
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Byron Bay Surf Company has the following budgeted sales for the next six-month period: Month Unit Sales June July August September 90,000 120,000 210,000 150,000 180,000 120,000 October November The company sells the product at a price of $40 per unit. Plans are to have an inventory of finished products that equal to 20% of the unit sales for the next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $8. Ending inventory levels for materials are equal to be 30% of the production needs for the next month. (2 marks) Required (show all workings): (a) Prepare sales budgets in units and dollars for the months of July and August (b) Prepare production budgets in units for the months of July and August (d) Prepare direct materials purchases budgets (in kilograms and dollars) for the month of July (6 marks) (6 marks)
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