Question
Arnold Co. budgeted to sell 11,500 units of Gizmo in September. Production of one unit of Gizmo requires two (2) pounds of aluminum and four
Arnold Co. budgeted to sell 11,500 units of Gizmo in September. Production of one unit of Gizmo requires two (2) pounds of aluminum and four (4) pounds of steel powder. The beginning inventory and the desired ending inventory are as follows:
| Beginning Inventory |
| Desired Ending Inventory | ||
Gizmo | 2,400 | units |
| 3,300 | units |
Aluminum | 1,500 | pounds |
| 1,700 | pounds |
Steel powder | 1,300 | pounds |
| 1,000 | pounds |
a) Production budget: How many units of Gizmo should Arnold plan to make in September?
b) Direct materials production budget, Aluminum and Steel Powder: Ignore your answer in (a). If Arnold plans to manufacture 15,000 units of Gizmo in September, how much Aluminum and how much Steel powder in pounds only does Arnold need for production in September?
c) Direct materials purchases budget, Aluminum: How many pounds of Aluminum does Arnold Co. need to purchase during September if Arnold plans to manufacture 15,000 units of Gizmo in September?
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