A.Nano Sdn Bhd (NSB) manufactures two (2) products called SA1 and RA2. Below are the budgeted sales for the month of January, 2021.

SA1

RA2

Budgeted sales (unit)

3,200

2,400

Price per unit (RM)

50

75

Opening inventory (unit)

1,200

1,800

Desired closing inventory (unit)

1,320

1,980

There are two (2) types of material used in the production which are MAT A and MAT

B. The following is the information related to material for the month of January, 2021:

MAT AMAT B

Opening inventory (unit)2,0001,950

Desired closing inventory (unit)10% of the production requirements for the month

Price per kg (RM)

Material used per unit:

4.00

5.00

SA1

5 kg

3 kg

RA2

3 kg

2 kg

REQUIRED:

Prepare the following budgets for the month of January 2021:

(a)Production budget

(3 Marks)

(b)Material required for production in quantities

(3 Marks)

(c)Material purchase budget

(4 Marks)