During December of 2009 Native Foods Ltd. formulated its 2010 sales forecast for products local Star apple and Naseberry as follows: Sales forecast Details

Details	Star Apple	Naseberry
November 2009	4500	2800
December 2009	6000	3700
January	5500	4000
February	6200	4500
March	5000	5200
April	4900	5400
May	6400	4800

a) The company planned to sell one Star apple for $35 and one Naseberry for $20 during 2010

. b) The closing stock level for both products at the end of each quarter is to be held at a level equal to ten percent (10%) of the budgeted sales for the preceding quarter.

c) The warehouse and stores managers estimate a monthly spoilage of 20 Star apples and 15 Naseberries and a monthly deterioration of 10 units of phosphate and 30 units of potassium. They have suggested that a provision should be made for these items damages and deterioration in store.

d) To produce one Star apple units (2) units of phosphate are required, while four (4) units of potassium are required to produce one Naseberry.

e) The cost of one unit of phosphate is $40, while the cost of one unit of potassium is $50.

f) Closing raw material stocks in units in store at the end of each quarter is to be equivalent to twenty percent (20%) of the forecasted sales for the next quarter.

Required: For the period, January 2010 to April 2010 do the following:

a) The direct raw materials purchases budget for both products for 2010. (90 marks)