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Prepare a material purchases budget in units

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Reference no: EM133089339

Question - Expected sales (in units) are as follows:

 

January

February

March

April

May

Sales (units)

10,000

11,000

12,000

13,000

14,000

Opening stock of finished goods is required to be 50% of that month's expected sales.

Each unit produced requires 1kg of raw material at a cost of $6 per kg.

Each month's opening stock of raw material must be sufficient to satisfy that month's production.

Required - Prepare a Material Purchases Budget in units and dollars for the months of January to March.

Reference no: EM133089339

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