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Question - Noel Big manufactures a product called Noeltide. The following information relates to the expected sales revenue and production costs of Noeltide from March to April 2022. Month March April Sales (units) 20,000 22,000 Sales (2) 95,000 104,500 The closing inventory of finished goods should be 5% of the following month's expected sales. 600 grams of material G at the cost of £0.60 per kg are needed to make one unit of Noeltide. There were 1,000 kg of material G in stock at the beginning of March and this is expected to increase by 200 kg each month. It takes twelve minutes to manufacture one unit of Noeltide and labour cost is £10 per hour. Variable production overheads cost £2.00 per labour hour and fixed production overheads are £9,000 monthly. The unit cost of Noeltide at the beginning of March is £15. Non- production overheads are 24,000 per month. Prepare an operating budget for the month of March 2022. You are required to show all workings.
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