Exercise TWO: Silk house SDN BHD manufactures silk scarfs and is planning to sale 4,000 scarfs in April; 3,700 in May and, 3,500 in June. The companys policy is to maintain a finished goods inventory equal to 10% of the next months sales. Assume finished goods inventory at the end of June is estimated to be 300 scarfs. In addition Silk scarf requires one meter of silk.

Prepare the production budget (April; May and June)?

Prepare the raw material budget for quarter 2 (April; May and June)?