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a. The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix plus 25% of the next


 

a. The finished goods inventory on hand at the end of each month must equal 4,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 18,250 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 87,375 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows: July August September Budgeted Unit Sales 57,000 62,000 72,000 October 52,000 November 42,000 December 32,000 Required: 1. Prepare a production budget for Supermix for the months July, August, September, and October 3. Prepar

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