Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A sales budget is given below for one of the products manufactured by the Quick Production Limited: July : 25,000 units August: 40,000 units September:

A sales budget is given below for one of the products manufactured by the Quick Production Limited:

July : 25,000 units

August: 40,000 units

September: 65,000 units

October: 45,000 units

November: 35,000 units

December: 30,000 units

The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on June 30 the finished goods inventory totalled only 4,000 units.

Each unit of product requires three pounds of specialized material. Since the production of this specialized material by Quick's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 30% of the next month's production needs. This requirement had been met on July 1 of the current year.

Required:

A budget showing the quantity of material to be purchased each month for July, August and September and in total for the quarter.

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

Financial Shenanigans

Authors: Howard Schilit

2nd Edition

0071386262, 9780071386265

More Books

Students also viewed these Accounting questions

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago

Question

A greater tendency to create winwin situations.

Answered: 1 week ago