Question #1 (35 marks) Keep Clean Manufacturers produces two products; Purline and Furline. Both products use raw mater

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Question #1 (35 marks)
Keep Clean Manufacturers produces two products; Purline andFurline. Both products use raw material Fluoride andGlycerol. Each unit of Purline uses three (3) grams of Fluoride andfive (5) litres of Glycerol. Each unit of Furline uses two (2)grams of Fluoride and four (4) litres of Glycerol. Each gram ofFluoride is expected to cost $25 and a litre of Glycerol$30.
Sales and finished goods inventory budget for the year 2020 areas follows:
Purline
Furline
Budgeted Sales
20,000
units
Budgeted Sales
16,000
units
Opening Inventory
3,500
units
Opening Inventory
2,500
units
Closing Inventory
2,000
units
Closing Inventory
1,500
units
Selling Price
$300
Selling Price
$350
As at January 1, 2020, opening inventories of raw material are800 grams of Fluoride and 1,000 litres of Glycerol. At theend of 2020, the company plans to hold 2,000 grams of fluoride and1,800 litres of Glycerol.
The warehouse and stores managers have suggested that aprovision should be made for damages and deterioration of itemsheld in store, as follows.
Products
Purline
Loss of 60 units
Furline
Loss of 70 units
Raw Materials
Fluoride
Loss of 200 grams
Glycerol
Loss of 120 liters
Required: