Question #$3$

Radiance Inc. manufactures two products, infrared and laser, which use raw

materials, GB and TB$.$ One unit of infrared uses $2$ litres of GB and $4$ kilograms of TB$.$

One unit of laser uses $3$

litres of GB and $6$ kilograms of TB$.$ A litre of GB is expected to cost $$4$ and a kilogram

of TB $$8.$

Sales and finished goods inventory budget for the year $2019$ are as follows:

Inventories of raw material are $4,200$ litres of GB and $4,000$ kilograms of TB at $1$

January, $2022$ and the company plans to hold $3,500$ litres and $4,500$ kilograms,

respectively, at December $31,2022.$

The warehouse and stores managers have suggested that a provision should be made

for damages and deterioration of items held in store, as follows.

Required:

a$.$ Prepare the following for the year $2022$:

i$.$ Sales budget

ii$.$ Production budget

iii. Raw material usage budget

iv$.$ Raw material purchase budget