Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Production and DM budgets: Stolen Horse, Inc. manufactures and distributes toy dinosaurs throughout the Western United States. Four (4) ounces of plastic are required

image text in transcribed

1. Production and DM budgets: Stolen Horse, Inc. manufactures and distributes toy dinosaurs throughout the Western United States. Four (4) ounces of plastic are required to manufacture each 'STEGOSAURUS' toy dinosaur, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of the STEGOSAURUS toy occur. To keep production and sales moving smoothly, the company has the following inventory requirements: The finished goods inventory on hand at the end of each month must equal 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 16,600 units. The raw materials inventory on hand at the end of each month must equal 40% of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 96,000 ounces of plastic. The company maintains no work in process inventories. A monthly sales budget for STEGOSUARUS toys for the third and fourth quarters of the year follows. tt Budgeted Unit Salese 63,000- 68,000- 78,000- 58,000- 48,000+ 38,000- Julye August September October November December- t t e t a. Prepare a production budget for STEGOSAURUS for the months July, August, September, and October.' b. Prepare a direct materials (DM) budget showing the quantity of plastic (in ounces) to be purchased for each of the months of July, August, and September and for the third quarter in total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Principles Of Best Practice In Clinical Audit

Authors: Robin Burgess

2nd Edition

1138443646, 978-1138443648

More Books

Students also viewed these Accounting questions