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6. The production manager of Orienza Company plans to have an inventory on hand at the end of each month that will equal to 30%
6. The production manager of Orienza Company plans to have an inventory on hand at the end of each month that will equal to 30% of the sales of the next month. The actual inventory is at the needed level for the end of June. A sales budget for the next seven months is a follows: Months Units July 40,000 August 50,000 September 60,000 October 70,000 November 60,000 December 50,000 January 60,000 Required: Prepare a production budget for the last six months of the year (15 pts) 7. The U-Z Door Company manufactures garage door units. The units include hinges, door panels, and other hardware. Prepare a direct materials purchases budget for the first quarter of the year based on the budgeted production of 16,000 garage door units. Sandee Morton, the controller, has provided the information that follows: Hinges 4 sets per door $ 11.00 per set Door panels 4 panels per door $ 27.00 per panel Other hardware 1 lock per door $31.00 per lock 1handle per door $22.50 per handle 2 roller tracks per door $ 16.00 per set of 2 roller tracks 8 rollers per door $ 4.00 per roller Prepare Material Budget for UZ Door Company. Assume no beginning or ending quantities of materials inventory. (20 pts)
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