3 Newton Ltd manufactures three products; the expected sales for each product are shown below. Sales in units Product 1 Product 2 Product 3 3,000 4,500 3,000 Opening stock is expected to be: Product 1 500 units Product 2 700 units Product 3 500 units Management have stated their desire to reduce stock levels and closing stocks are budgeted as: Product 1 500 units Product 2 700 units Product 3 500 units Management have stated their desire to reduce stock levels and closing stocks are budgeted as: Product 1 200 units Product 2 300 units Product 3 300 units Three types of material are used in varying amounts in the manufacture of the three products. Material requirements per unit are shown below: Product 1 Product 2 Product 3 Material M1 Material M2 Material M3 2 kg 3 kg 4 kg 3 kg 3 kg 4 kg 2 kg 4 kg 6 kg Product 1 200 units Product 2 300 units Product 3 300 units Three types of material are used in varying amounts in the manufacture of the three products. Material requirements per unit are shown below: Product 1 Product 2 Material M1 2 kg 3 kg Product 3 4 kg Material M2 3 kg 3 kg 4 kg Material M3 6 kg 2 kg 4 kg Tha nnaninn etnek of material is evnerted to ha Semi-skilled Skilled labour are to be paid at the rate of 6/hour and semi-skilled labour at the rate of 4/hour. Required: Prepare budgets for The opening stock of material is expected to be: Material M1 4,300 kg Material M2 3,700 kg Material M3 4,400 kg (a) production (in quantity) (5 marks) (b) materials usage (in quantity) (5 marks) (c) materials purchases (in quantity and value) (5 marks) (d) labour (in hours and value) (5 marks) (20 marks) Management are keen to reduce stock levels for materials as well and closing stocks are to be much lower. Expected levels are shown below: (e) Discuss the purpose of budgeting Material M1 2,200 kg Material M2 1,300 kg Material M3 2,000 kg