Maranah Med Ltd. Manufactures a product each unit of which requires two kilos of a material called prudice.Production for the months of September 2011 to January 2012 is budgeted as:

2011Number of units produced

September 1000

October3 000

November4 000

December2 000

2012

January3 000

The stock of prudice at 1 September 2011 is 2 000 kilos.It is expected that this material will become difficult to obtain in 2012 and that the price will increase.It has therefore been decided that the stock of this material will be increased by 1 000 kilos each month to the end of 2011.Prudice costs $2 per kilo at present but the price is expected to rise to $3 in November.

Required:

The raw materials purchasing budget for Maranah Med Ltd for the four months to 31 December 2011.

Answer rating: 100% (QA)

To calculate the raw materials purchasing budget for Maranah Med Ltd for the four months to 31 Decem... View the full answer