1. Prepare a production budget of finished goods by month and in total for the three-month period of January to March from the following information:

	January	February	March	April
Sales in Units	500,000	800,000	1000,000	1200,000

The end of month inventories of finished goods must equal 15% of the next

months sales.

2. The raw material requirement for production in question 1 is 2 kg of raw material per of unit of finished goods. The production budget of finished goods in April is 1250,000 units. Use the answer of question 1 as the production budget of finished goods for January, February, and March. The end of month inventories of raw material must equal 10% of the next months needs of raw material. The cost of raw material is TK 5 per kg. Prepare a raw material purchase budget by month and in total for the three-month period of January to March.