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Budgeting Production and Purchases and Just-In-Time Materials Inventory Hancock Manufacturing, Inc. is preparing budgets for the third quarter of 2016. Hancock produces only one product

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Budgeting Production and Purchases and Just-In-Time Materials Inventory Hancock Manufacturing, Inc. is preparing budgets for the third quarter of 2016. Hancock produces only one product in its factory. This product requires 5 pounds of material B, 2 pounds of material G, and a component, K, that is purchased from another manufacturer. Hancock operates on a just-in-time basis for material B. As a result, Hancock maintains no inventory of material B. On July 1, 2016, the inventory of material G is expected to be 3,000 pounds and the inventory of component K is expected to be 1,500 units. Hancock wants the inventories of G and K at September 30,2016 , to be 20% less than the inventories at July 1 , 2016. The inventory of finished products at June 30,2016 , is expected to be 2,000 units; the desired inventory at September 30, 2016, is 4,000 units to allow a buildup for heavy sales in the fourth quarter. The sales forecast for the third quarter is 13,000 units at $300 each. Budgeted purchase costs are $10 per pound for B,$7 per pound for G, and $40 per component for K. Do not use negative signs with any of your answers below. a. Prepare the production budget for Hancock Manufacturing, Inc., for the thid quarter of 2016. b. Prepare the direct material budget for Hancock Manufacturing, Inc., for the third quarter of 2016. b. Prepare the direct material budget for Hancock Manufacturing, Inc., for the third quarter of 2016. Budgeting Production and Purchases and Just-In-Time Materials Inventory Hancock Manufacturing, Inc. is preparing budgets for the third quarter of 2016. Hancock produces only one product in its factory. This product requires 5 pounds of material B, 2 pounds of material G, and a component, K, that is purchased from another manufacturer. Hancock operates on a just-in-time basis for material B. As a result, Hancock maintains no inventory of material B. On July 1, 2016, the inventory of material G is expected to be 3,000 pounds and the inventory of component K is expected to be 1,500 units. Hancock wants the inventories of G and K at September 30,2016 , to be 20% less than the inventories at July 1 , 2016. The inventory of finished products at June 30,2016 , is expected to be 2,000 units; the desired inventory at September 30, 2016, is 4,000 units to allow a buildup for heavy sales in the fourth quarter. The sales forecast for the third quarter is 13,000 units at $300 each. Budgeted purchase costs are $10 per pound for B,$7 per pound for G, and $40 per component for K. Do not use negative signs with any of your answers below. a. Prepare the production budget for Hancock Manufacturing, Inc,, for the third quarter of 2016. Do not use negative signs with any of your answers below. a. Prepare the production budget for Hancock Manufacturing, Inc., for the third quarter of 2016. b. Prepare the direct material budget for Hancock Manufacturing, Inc., for the third quarter of 2016

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