16.10 Hildebrandt St. Martins Limited manufactures a single product. Its budget sales (in units)

for December 2012 are 9350. Opening inventory of finished goods for the month is budgeted at 12 360 units and closing inventory is budgeted at 13 475 units.

Each unit of finished goods inventory uses 2kg of a raw material that is forecast to cost

£3 per kilo. Opening inventory of raw material at the beginning of December 2012 is forecast at 18 000 kilos, but closing inventory for the month should fall to 16 000 kilos.

What is the budget amount in £s of purchases of this raw material for December 2012?

a) £56 790

b) £68 790

c) £49 410

d) £55 410.