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P&S Company manufactures and sells two types of products call Alpha and Beta.

• The forecasted sales and the selling price for both the products Alpha and Beta are as follows.

Product	Forecasted sales. (units)	Selling price per unit (OMR)
Alpha	7000	25
Beta	3500	30

• The company has the following opening inventory and required to maintain the closing inventory levels for products Alpha and Beta.

	Alpha	Beta
	(in units)	(in units)
Opening inventory	200	50
Closing inventory	300	150

• The raw materials required to produce one unit of product Alpha, and one unit of product Beta is given as follows.

Product (Finish good)	Material X (in Kg per unit)	Material Y (in Kg per unit)
Alpha	4	2
Beta	3	4

• Following are the information related to raw materials opening and closing inventories.

	Raw materials
	Material X (Kg)	Material Y (Kg)
Opening inventory	1500	800
Closing inventory	1500	1500

The standard price for material X and material Y is as follow.

	Price per Kg (OMR)
Material X	0.500
Material Y	1.000

• The standard labour hour requirement is 3 hours per unit to produce Alpha and 2 hours per unit to produce Beta. Standard labour rate is OMR 5 per hour.

1. Prepare the functional budgets.
   1. Sales Budget
   2. Production Budget
   3. Raw Material Usage Budget iv. Raw Material Purchase Budget

v. Labour Cost Budget

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