Transcribed Image Text: Draw up a material purchase budget from the following information: Use the given

Transcribed Image Text: Draw up a material purchase budget from the following information: Use the given
format.
Estimated sales of a product is 50,000 units. Two kinds of raw materials A and
B are required for manufacturing the product. Each unit of the product requires 3 units of A and 4
units of B. The estimated opening balance in the beginning of the next year: finished goods 10,000
units; A, 15,000 units; B, 20,000 units. The desirable closing balance at the end of the next year:
finished product, 8,000 units; A, 10,000 units; B 12,000 units.
Material Purchase Budget for the Year
Particulars
Material A
Material B
Units
Material Required to meet Production Target
Material A – 33,000 x 3
Material B- 33,000 x 4
Add : Desired closing stock at the end of next year
Totals
Units
Less : Expected stock at the commencement of
next year (opening balance)
Quantity of Materials to be purchased

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