Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows:

Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units

Opening inventory 1,000 units Opening inventory 2,000 units

Closing inventory 600 units Closing inventory 800 units

Selling price $400 Selling price $300

Raw material inventory budget for the year 2020 are as follows:

Pins Clips

Opening inventory 2,400 units Opening inventory 3,300 units

Closing inventory 500 units Closing inventory 600 units

The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as follows.

Product

Bassinets

Loss of 80 units

Swings

Loss of 50 units

Raw materials

Pins Loss of 30 units

Clips Loss of 20 units

Required:

iii. Raw material usage budget

iv. Raw material purchase budget