The Armstar Company prepared following figures as a basis for its budget for 2020. (5 MARKS)

Product Sales Price Material Required

A B

Tribal 80,000 1.5 1Kg 2Kg

Poly 40,000 2.0 2 -

Powder 100,000 1 1 3

Raw Material Inventory:

Jan1 Dec 31 Price

A 10,000 12,000 0.20

B 12,000 15,000 0.10

Finish goods inventory:

Labour hour per 1000 units

Trible 5,000 6,000 50

Poly 2,000 1,000 125

Powder 10,000 8,000 12.5

Required:

1. Production budget
2. Raw Material budget consumption
3. Raw Material purchase budget