Question
AH Corp has the following budgeted unit sales for the second half of the 2020: Month Unit Sales July 90,000 August 120,000 September 210,000 October
AH Corp has the following budgeted unit sales for the second half of the 2020: Month Unit Sales July 90,000 August 120,000 September 210,000 October 150,000 November 180,000 December 120,000 It is expected to have 30,000 units of finished goods in inventory at the beginning of budget period and the plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on at the start of the budget period was 15,000 pounds. Required: Prepare production budgets in units for August, September, and October. Prepare a purchases budget in pounds for August, September, and October., and give total purchases in both pounds and dollars for each month.
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