Question

Cha. Co., manufactures a number of different products, among which are 10 pouch pouches. The sales budget for the first four months of the year is shown below.

Month	Sales Unit	Sales ((Rupiah (Rp))
January	200.000	1.000.000
February	140.000	700.000
March	180.000	900.000
April	210.000	1.050.000

To make tea bags, you need 2 raw materials, namely tea bags and tea powder. Each bag unit requires 1 tea bag and 10 ounces of tea powder. The company sets the policy:

1. Each month's ending inventory is 20% of the following sales month. At the beginning of January, the tea supply was 35,000 bags.
2. The ending inventory of raw materials each month is 10% of the production in the following month. This policy begins to be fulfilled on 1 January.

Requested:

Make a budget for the purchase of direct raw materials for tea bags and tea powder for January and February.

Answer 1

	January	February
Tea Bags	212,300	143,500
Tea Powder	21,23,000	14,35,000

April Month Sales Unit Ending Inventory Beginning Inventory Production Units January February March April 2,00,000.00 1,40,000.00 1,80,000.00 2,10,000.00 28,000.00 36,000.00 42,000.00 35,000.00 28,000.00 36,000.00 42,000.00 1,93,000.00 1,48,000.00 1,86,000.00 Month January February March Production Units 1,93,000.00 1,48,000.00 1,86,000.00 Tea Powder Requirement Per Unit 10.00 10.00 10.00 Production Requirement 19,30,000.00 14,80,000.00 18,60,000.00 Ending Inventory 1,93,000.00 1,48,000.00 Beginning Inventory 1,93,000.00 Puchase of Direct Raw Material 21,23,000.00 14,35,000.00 Tea Bag Requirement Per Unit 1.00 1.00 1.00 1.00 Production Requirement 1,93,000.00 1,48,000.00 1,86,000.00 2,10,000.00 Ending Inventory 19,300.00 14,800.00 Beginning Inventory 19,300.00 Puchase of Direct Raw Material 2,12,300.00 1,43,500.00