Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

earl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) solvent H300 are required to manufacture each unit

image text in transcribed
image text in transcribed
earl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving moothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 3.000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,200 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 108,000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. July August September October November December Budgeted Unit Sales 71.000 76,000 86,000 66.000 56.000 46.000 nework i A MOTILITY Sdies puuyeu i SuperX TUI UJE umu di TVUIL July August September October November December Budgeted Unit Sales 71,000 76,000 86,000 66,000 56,000 46,000 Required: 1. Prepare a production budget for Supermix for the months 3. Prepare a direct materials budget showing the quantity of the quarter in total. Complete this question by entering your answers in the Required 1 Required 3 Prepare a production budget for Supermix for the months July, Pearl Products Limit Production Budget earl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimeters (cc) solvent H300 are required to manufacture each unit of Supermix, one of the company's products. The company now is planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving moothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must equal 3.000 units of Supermix plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,200 units. b. The raw materials inventory on hand at the end of each month must equal one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 108,000 cc of solvent H300. c. The company maintains no work in process inventories. A monthly sales budget for Supermix for the third and fourth quarters of the year follows. July August September October November December Budgeted Unit Sales 71.000 76,000 86,000 66.000 56.000 46.000 nework i A MOTILITY Sdies puuyeu i SuperX TUI UJE umu di TVUIL July August September October November December Budgeted Unit Sales 71,000 76,000 86,000 66,000 56,000 46,000 Required: 1. Prepare a production budget for Supermix for the months 3. Prepare a direct materials budget showing the quantity of the quarter in total. Complete this question by entering your answers in the Required 1 Required 3 Prepare a production budget for Supermix for the months July, Pearl Products Limit Production Budget

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

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp, Loreen Knapp

4th Edition

0324048610, 9780324048612

More Books

Students also viewed these Accounting questions

Question

Name two frameworks for understanding the competitive landscape.

Answered: 1 week ago