NAME: DATE: SCORE: BUDGETING AND FORECASTING (27 points) CASE 1: RAW MATERIALS BUDGET XYZ Company asks you to prepare a budget for product P with the following information: The beginning inventory of raw materials in January is 1,000 kg. The price of raw materials per kg is P3.50. Two (2) kg of raw materials are required in the production of each unit. The opening inventory of product X in January is expected to be 1,300 units. The company implements the following inventory policies: At the end of each month, the following amounts are held: oRaw materials: 20% of the requirement for the following month's production; oFinished goods: 30% of the following month's sales; The projected monthly sales of product X were already submitted to you by the sales department. Required: Prepare the budget for raw materials purchase (units) and (Php) for January and February. (18 points: 18 items x 1 point) Sales (units) January 4,000 February 5,000 March 6,000 April 7,000 Ending inventory (units) - Beginning inventory (units) 1,300 Production units Material usage per unit (kg) 2 2 2 2 Total Usage (kg) Ending inventory (kg) - Beginning inventory (kg) 1,000 Total Purchases (kg) Price per kg 3.5 3.5 Total