SVS Limited manufactures a single product 'A1'. The company has estimated its quarter-wise sales for the next year as follows: Quarter I II III IV…

SVS Limited manufactures a single product 'A1'. The company has estimated its quarter-wise sales for the next year as follows: Quarter I II III IV Sales (Units) 72,000 90,000 99,000 1,08,000 In the beginning of the year, the opening stock of finished goods is 14,400 units and the company expects to maintain the closing stock of finished goods at 29,400 units at the end of the year. The production pattern in each quarter is based on 80% of the sales of the current quarter and 20% of the sales of the next quarter. The company maintains this 20% of sales of next quarter as closing stock of current quarter. The opening stock of raw materials in the beginning of the year is 24,000 kgs and the closing stock at the end of the year is required to be maintained at 12,000 kgs. Each unit of finished output requires 2 kgs of raw material. The production time required to produce one unit of product 'A1' is 5 hours. During the production, the product uses two machines as under: Product Machine A Machine B Total A1 2 hours 3 hours 5 hours Machine A requires 100 hours of maintenance after a use of 5000 hours and Machine B requires 100 hours of maintenance after use of 3000 hours. Required: (i) Prepare quarter-wise Production Budget (in units) and the Raw Material Consumption budget (in quantity) for the next year. (ii) Calculate total machine hours including maintenance time required during the year for Machine A and Machine B to manufacture product 'A1'.