Question $3$

A company manufactures a single product, the Sunbeam, which requires just one material input called the Sunstone. $10$ kilogrammes $(kgs)$ of Sunstone are required to produce one unit of Sunbeam.

Each unit of the Sunbeam takes $4$ hours of direct labour to produce.

Inventory held on $30$ April was $6,000$ finished Sunbeam, and $30,000$ kgs of Sunstone.

The anticipated demand for the Sunbeam is as follows:

$\backslash$table$[[$May$,10,000$ units$],[$June$,12,000$ units$],[$July$,13,500$ units with an anticipated opening inventory of $27,000kgs$ of Sunstone$]]$

It will be company policy to maintain raw material inventory at a level of $30\%$ of the following month's usage, and to maintain finished goods inventory at a level to satisfy $70\%$ of the following month's estimated sales.

Required:

Calculate the following budgets for each of May and June:

a$)$ Production of Sunbeam $($in units$)$

b$)$ Materials Usage of Sunstone $($in kgs$)$

c$)$ Materials Purchase of Sunstone $($in kgs$)$

d$)$ Direct Labour $($in hours$)$

$(4$ marks$)$

$(1$ mark$)$

$(4$ marks$)$

$(1$ mark$)$

Total: $10$ marks