Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Boxer Company plans to sell 400,000 units of finished product in July 20x1. Management (1) anticip growth rate in sales of 5% per month thereafter

Boxer Company plans to sell 400,000 units of finished product in July 20x1. Management (1) anticip growth rate in sales of 5% per month thereafter and (2) desires a monthly ending finished-goods inve units) of 80% of the following month's estimated sales. There are 300,000 completed units in the Jun inventory. Each unit of finished product requires four pounds of direct material at a cost of $1.50 per pound. Th 1,600,000 pounds of direct material in inventory on June 30, 20x1

Required: A. Prepare a production budget for the quarter ended September 30, 20x1. Note: For both part "A" a "B" of this problem, prepare your budget on a quarterly (not monthly) basis.

B. Independent of your answer to part "A," assume that Boxer plans to produce 1,200,000 units of product for the quarter ended September 30. If the firm desires to stock direct materials at the end of period equal to 25% of current production usage, compute the cost of direct material purchases for th quarter.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

8. How are they different from you? (specifically)

Answered: 1 week ago