QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Use the information provided below to prepare the Materials Purchases Budget of Lunar Limited for $2025.$

INFORMATION

$(5$ marks$)$

The required production of Lunar Limited for $2025$ for the only product that it manufactures is $5000$ units. Four kilograms of direct materials are required for each unit produced. The direct materials inventories on $01$ January $2025$ and $31$ December $2025$ are expected to be $3000$ kilograms and $5000$ kilograms respectively. The expected purchase price is $R6$ per kilogram.