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Ancra Co manufactures stuffed bears. The budgeted units to be produced and sold are below Expected Production Expected Sales August 6,200 8,000 7 100 7

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Ancra Co manufactures stuffed bears. The budgeted units to be produced and sold are below Expected Production Expected Sales August 6,200 8,000 7 100 7 500 It takes 2 metres of yarn to produce a bear The company's policy to maintain yarn at the end of each month equal to 25% of the next month's production needs and to maintain a finished goods Inventory at the end of each month equal to 30% of next month's anticipated production needs. The cost of yarn is $0.75 a metre Beginning inventory for the first of August is 4,050 units 8 500 metres of yarn were on hand. The number of bears produce for September is 7100 Prepare a budget to show the numbers of bears to produce for August and prepare a direct material budget for August September

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