Problem 10 The following are he estimated sales of a company for eight months ending 30.11.2012 Months Estimated Sales (units) Apr-12 12,000 May-12 13,000 Jun-12 9,000 Jul-12 8,000 Aug-12 10,000 Sep-12 12,000 Oct-12 14,000 Nov-12 12,000 As a matter of policy, the company maintains the closing balance of finished goods and raw materials as follows: Closing balance of a month Stock item Finished goods 50% of the estimated sales for the next month Raw material Estimated consumption for the next month Every unit of production requires 2 kg of raw material costing $5 per kg. Prepare Production Budget (in units) and Raw Material Purchase Budget (in units and cost) of the company for the half year ending 30 September 2012