Question
ACME Inc. produces a single product with the following information. Budgeted sales for 2023 are: Units April 60,000 May 80,000 June 65,000 July 55,000 The
ACME Inc. produces a single product with the following information. Budgeted sales for 2023 are:
| Units |
April | 60,000 |
May | 80,000 |
June | 65,000 |
July | 55,000 |
The company has the following inventory requirements:
- The finished goods ending inventory must be 10% of the following month's sales.
- Each unit requires 5 grams of raw materials.
- The raw materials ending inventory must be equal to 15% of the following month's production needs for raw materials.
Required (the three-line report heading is not needed for this question):
- a production budget for the second quarter beginning April, by month and in total. (9.5 marks)
- a direct material purchases budget showing the quantity of materials to be purchased for May.
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Auditing A Practical Approach with Data Analytics
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