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Following is a production budget for a meal kit assembled by Uni-Focus Limited: Number of Meal Kits Assembled Month October 1,200 November 1,600 December 1,800
Following is a production budget for a meal kit assembled by Uni-Focus Limited: Number of Meal Kits Assembled Month October 1,200 November 1,600 December 1,800 Each meal kit includes 2 packets of mustard. Uni-Focus has a policy of maintaining an inventory at the end of each month equal to 12% of the following month's production needs. The ending inventory on September 30 consisted of 150 mustard packets. Each packet costs $0.25. Required: 1. Prepare a budget showing the quantity of mustard packets to be purchased for October and November. (6 marks) 2. At the bottom of the budget you prepared in Part 1 above, show the amount of mustard packet purchases in dollars for October and November. (2 marks)
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