Self-test Jack Ltd manufactures a hand-held recorder which sells for £64. The company has prepared a projection of units that could be demanded for the first 5 months of 2009.

This projection of demand is:

Month January February March April May No. of units 194 210 280 320 400 At 1 January 2009 the company has stock of 46 recorders. It is the agreed company policy that the stock at the month end will equal 40 per cent of the following month’s planned sales.

Each recorder requires 1.5 kg of raw material, costing £8.20 per kg, for its manufacture. At 1 January the raw material stock is 140 kg and company policy is that the month-end stock balance must equal 60 per cent of the following month’s planned production needs.

You are required to prepare stock and raw material budgets for January to March 2009.