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Can you please explain me this Problem? Thanks! X Co. has the following budgeted sales for the selected six month period in 2028: Month June
Can you please explain me this Problem? Thanks!
X Co. has the following budgeted sales for the selected six month period in 2028: Month June July August September October November Unit Sales 15,000 20,000 35,000 25,000 27,000 20,000 There were 8,500 units of finished goods in inventory at the beginning of June, 2028. Plans are to have an inventory of finished product equal to 30% of the unit sales for the next month. Four pounds of materials are required for each unit produced. Each pound of material costs $28. Ending inventory for materials equals 35% of the production requirements for the next month. Materials inventory on June 1 was 6,000 pounds. Required: a) Prepare a production budget in units for July, August, and September. b) Prepare a purchases budget in pounds and dollars for July, August, and September
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