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Fuqua Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 13,000 units in February, and 14,000 units in March.
Fuqua Company's sales budget projects unit sales of part 198Z of 10,300 units in January, 13,000 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 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. Your answer is partially correct. Prepare a production budget for January and February 2020. FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2020 + Expected Unit Sales Add : Desired Pounds in Ending Materials Inventory + Total Required Units January 10300 2600 12900 February 13000 2800 15800 Less : Beginning Finished Goods Inventory A 2060 i 2600 i Required Production Units 10840 13200 eTextbook and Media
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