Prepare the sales budget for the quarter ending 30 June 2026, showing adjusted quantities and total revenue by division and in total.

Here are the solutions to the budgeting questions: Part A – Sales and Production Budget f) Prepare the sales budget for the quarter ending 30 June 2026, showing adjusted quantities and total revenue by division and in total. Step 1: Calculate adjusted sales units for each product and division. Slab Units: North: 8,000 units + 1,500 units (marketing campaign) = 9,500 units Central: 14,000 units × 1.10 (10% upward revision) = 15,400 units South: 10,000 units (no change) Panel Units: North: 5,500 units + 1,500 units (marketing campaign) = 7,000 units Central: 9,000 units × 1.10 (10% upward revision) = 9,900 units South: 7,000 units + 2,000 units (additional sales) = 9,000 units Step 2: Prepare the Sales Budget. Molapo Manufacturing Ltd Sales Budget for the Quarter Ended 30 June 2026 | Division | Product | Adjusted Units | Selling Price (P) | Total Revenue (P) | | :------- | :------ | :------------- | :---------------- | :---------------- | | North | Slab | 9,500 | 180 | 1,710,000 | | | Panel | 7,000 | 260 | 1,820,000 | | Central | Slab | 15,400 | 180 | 2,772,000 | | | Panel | 9,900 | 260 | 2,574,000 | | South | Slab | 10,000 | 180 | 1,800,000 | | | Panel | 9,000 | 260 | 2,340,000 | | Total| Slab| 34,900 | | 6,282,000 | | Total| Panel| 25,900 | | 6,734,000 | | Grand Total | | | | P13,016,000 | g) Prepare the production budget for each product for the quarter ending 30 June 2026. Step 1: Calculate desired closing stock for each product. Desired Closing Stock (Slab Units) = 34,900 units (budgeted sales) × 20\% = 6,980 units Desired Closing Stock (Panel Units) = 25,900 units (budgeted sales) × 20\% = 5,180 units Step 2: Prepare the Production Budget. Molapo Manufacturing Ltd Production Budget for the Quarter Ended 30 June 2026 | Details | Slab Units | Panel Units | | :---------------------- | :--------- | :---------- | | Budgeted Sales (units) | 34,900 | 25,900 | | Add: Desired Closing Stock (units) | 6,980 | 5,180 | | Less: Opening Stock (units) | (3,200) | (2,100) | | Budgeted Production (units) | 38,680 | 28,980 | h) State, with a reason, which functional budget must always be prepared first and why this determines the sequence for all other budgets. The Sales Budget must always be prepared first. This is because the sales budget establishes the expected level of sales activity (in units and revenue) for the budget period. All other functional budgets, such as the production budget, direct materials budget, direct labour budget, and overhead budget, are directly dependent on and derived from the sales volume determined in the sales budget. Without a clear sales target, it is impossible to accurately plan for production and resource requirements. That's 2 down. 3 left today — send the next one.