The sales director of a manufacturing company reports that next year he expects to sell 40,000 units of a particular product. The production department gives the following particulars:
Two kinds of raw materials A and B are required for manufacturing the product. Each product requires 3 units of material A and 2 units of material B.
The estimated opening balances for the next year will be:
|
Finished product: |
10,000 units. |
|
Material A: |
12,000 units. |
|
Material B: |
15,000 units. |
The desirable closing balances at the end of the year are:
|
Finished product– |
16,000 units. |
|
Material A– |
14,000 units. |
|
Material B– |
15,000 units. |
Draw a material-purchase budget.