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FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2020 January Required Production Units 11280 Direct Material Pounds Per Unit 4 Total Materials
FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2020 January Required Production Units 11280 Direct Material Pounds Per Unit 4 Total Materials Required 45120 Add : Desired Pounds in Ending Materials Inventory 20576 Total Materials Required 65696 Less : Beginning Finished Goods Inventory 18048 i Direct Materials Purchases 47648 Cost Per Pound $ 3 Units To Be Produced $ 142944 Fuqua Company's sales budget projects unit sales of part 1982 of 10,900 units in January 12,800 units in February, and 13,100 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $ 3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2020 January Required Production Units 11280 Direct Material Pounds Per Unit 4 Total Materials Required 45120 Add : Desired Pounds in Ending Materials Inventory 20576 Total Materials Required 65696 Less : Beginning Finished Goods Inventory 18048 i Direct Materials Purchases 47648 Cost Per Pound $ 3 Units To Be Produced $ 142944 Fuqua Company's sales budget projects unit sales of part 1982 of 10,900 units in January 12,800 units in February, and 13,100 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $ 3 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019
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