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answers (a),(b) and (c). please write clearly. HOMEWORK CHAPTER 1. Ruby Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Four cubic
answers (a),(b) and (c). please write clearly.
HOMEWORK CHAPTER 1. Ruby Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Four cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units of Supermix plus 25% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 11.000 units. b. The raw materials inventory on hand at the end of each month must be equal to 40% of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 59.600 cc of solvent H300. c. The company maintains no work in process inventories. A sales budget for Supermix for the last six months of the year follows. Budgeted Sales Unit July 36,000 August 41,000 September 49,000 October...... 32,000 November.. 24,000 December 18,000 Required: 1. Prepare a production budget for Supermix for the months July August September, and October 2. Examine the production budget that you prepared in (1) above. Why will the company produce more units than it sells in July and August, and fewer units than it sells in September and October? 3. Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total TeremStep by Step Solution
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