Problem $2(10$ marks$)$

MSI Company produces Laptops

MSI expects to sell $20,000$ units in January, $19,000$ units in February, and $65,000$ units in March. MSI's desired ending inventory is $15\%$ of the following month's sales. That requirement was met on January $1.$

The production of the Laptops requires a number of direct materials. One of the direct materials is a camera and each unit of production requires $4$ of them. The company has a policy that requires $20\%$ of next months direct material production needs to be in ending inventory. beginning inventory of cameras in January is expected to be $60,000$ units.

Using the above information, answer the following questions:

A$.$ Prepare a production budget for January and February. $(6$ marks$)$

production Budyet

B$.$ Prepare a direct material purchase budget for cameras for January $(4$ marks$)$

Divect Material Purchase Budget

Ientop requires $4$ caner

$17850*4=$

$25900\mathrm{.}4$

$103600\mathrm{.}8$

$10720$

Lo dorived endicy,

inver.