Question

FC manufactures three products from three basic raw material 'SILVER' costing RM 1.00 per unit, 'GOLD' costing RM 2.00 per unit and 'BRONZE' costing RM 0.50 per unit. The company operates a budgetary control system. The budgeted data for month of October 2011 is as follows:

Product	A	B	C
Sales (RM)	750 000	540 000	840 000
Selling price per unit (RM)	100	108	140
Stock of finish products as at 1 October 2011	1 500	1 000	1 250
Standard mixes in units:
Silver	2.5	-	6
Gold	-	5	4
Bronze	2.5	2.5	-

Raw Material	Silver	Gold	Bronze
Stock of raw material as at 1 October 2011	12 250	10 250	8 750

The company plans to reduce the stocks at 30 October 2011 by:

Raw material- 20%

Finished products- 10%

You are required to prepare for the month of October 2011 the following budgets:

(i) Material usage (in units)

(ii) Material purchase (in units and value)

(iii) Production (in units)

Answer 1