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Question 6 (13 marks) Supercheap Co. Ltd has prepared the following sales plan (in units) for the next six months anuary: 2 February: 5000 March:

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Question 6 (13 marks) Supercheap Co. Ltd has prepared the following sales plan (in units) for the next six months anuary: 2 February: 5000 March: April May: June: 2000 4000 1000 2500 6000 The company's production policy requires production to meet the current month's sales plus 25% of the following month's sales. The process requires one raw material input at the rate of 2 kg per unit of product. The current cost of the raw material is S3/kg. Raw materials inventory policy requires that purchases cover current needs and provide for 10% of the next month's production needs. At the beginning of the first month both finished goods and raw materials inventory balances are expected be at the required policy levels Required: (G) Prepare the production budget (in units) on a monthly basis for the first three months

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