Question
Fuqua Companys sales budget projects unit sales of part 198Z of 10,700 units in January, 12,500 units in February, and 14,000 units in March. Each
Fuqua Companys sales budget projects unit sales of part 198Z of 10,700 units in January, 12,500 units in February, and 14,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $5 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next months production requirements, and its ending finished goods inventory to equal 20% of the next months expected unit sales. These goals were met at December 31, 2019. Prepare a direct materials budget for January 2019.
Part A is completed. I need help with Part B listed below for the same question.
For the Month Ending January 31, 2020?
For the Quarter Ending February 28, 2020?
For the Two Months Ending February 28, 2020?
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United to be Produced
Expected Unit Sales
Beginning Finished Goods Inventory
Total Required Units
Direct Materials Purchase
Total Cost of Direct Material Purchases
Desired Pounds in Ending Materials Purchases
Total Pounded Needed from Production
Beginning Direct Materials (Pounds)
Required Production Units
Direct Material Pounds Per Unit
Total Materials Required
Cost Per Pound
Desired Ending Finished Goods Inventory
Prepare a production budget for January and February 2020. (b) Prepare a direct materials budget for January 2020
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