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Q . 1 . Body Check ( Pvt . ) Ltd . , follows the practice of preparing budgets on an annual basis. The planned

Q.1. Body Check (Pvt.) Ltd., follows the practice of preparing budgets on an annual basis. The
planned quantities of opening and closing inventories for 2019 are given below:
Two units of Raw Material are essentially required for production of each unit of finished
product. In the next year the company plans to sell 720,000 units.
Required:
(a) Calculate the number of units the company would have to manufacture in the forthcoming
year.
(b) If 750,000 finished units are required to be manufactured, determine the quantity of Raw
Material required to be purchased.
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