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The following is an extract from the production budget for Rytuy Limited for the first three months of 2021: January February March Sales (units) 430
The following is an extract from the production budget for Rytuy Limited for the first three months of 2021:
| January | February | March |
Sales (units) | 430 | 440 | 460 |
Required production | 435 | 450 | 47 |
Each unit requires 2 kg of raw material. The raw materials inventory budget is expected to be 215 kg on 1 January and is required to be 40% of the following months production requirement. Prepare a raw materials budget and use it to answer the following:
Calculate the required purchases of raw material for January (in kg).
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