Anna estimates that raw material inventory levels will be 10% of production requirements at the beginning of the year and has made the following assumptions for closing raw material inventory levels: 1,700 kits, 800 kg of aluminium, 5,500 m of string, and 1,400 accessory kits at the end of 2019. Calculate the purchase requirements for each raw material, taking into account the inventory level assumptions. Given Anna’s cost assumptions above, how much will raw materials be expected to cost Smart Sports in 2019? Complete Table 12.5. The team kit solution has been given as an example.

Table 12.5 2019 budget: raw material purchases (units and cost) Aluminium String Team kits Production 16,000 requirement: units Opening raw material (1,600) inventory: units Closing raw material 1,700 inventory: units Purchase requirements: units 16,100 Purchase cost 16,100 x 3.50 = 56,350 Accessory kits