Question
Maranah Med Ltd. Manufactures a product each unit of which requires two kilos of a material called prudice.Production for the months of September 2011 to
Maranah Med Ltd. Manufactures a product each unit of which requires two kilos of a material called prudice.Production for the months of September 2011 to January 2012 is budgeted as:
2011Number of units produced
September 1000
October3 000
November4 000
December2 000
2012
January3 000
The stock of prudice at 1 September 2011 is 2 000 kilos.It is expected that this material will become difficult to obtain in 2012 and that the price will increase.It has therefore been decided that the stock of this material will be increased by 1 000 kilos each month to the end of 2011.Prudice costs $2 per kilo at present but the price is expected to rise to $3 in November.
Required:
The raw materials purchasing budget for Maranah Med Ltd for the four months to 31 December 2011.
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