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Corinthian Corp's budgeted unit sales for the next three months are: Month April May June July Unit Sales 10,000 8,000 9,000 11,000 There were 2,000
Corinthian Corp's budgeted unit sales for the next three months are: Month April May June July Unit Sales 10,000 8,000 9,000 11,000 There were 2,000 units of finished goods in inventory at the beginning of April. Plans are to have an inventory of finished products that equal 15% of the unit sales for the next month. Six gallons of materials are required for each unit produced. Each gallon of material costs $3. Inventory levels for materials are equal to 50% of the needs for the next month. Materials inventory on April 1 was 25,000 gallons. Required: a. Prepare a production budget in units for May. b. Prepare a purchases budget in gallons for May and give total purchases in both gallons and dollars
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