Question
Fuqua Company's sales budget projects unit sales of part 198Z of10,300units in January,12,600units in February, and13,800units in March. Each unit of part 198Z requires3pounds of
Fuqua Company's sales budget projects unit sales of part 198Z of10,300units in January,12,600units in February, and13,800units in March. Each unit of part 198Z requires3pounds of materials, which cost $4per 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.
Prepare production budget for January and February 2020.
FUQUA COMPANY
Production Budget
For the Quarter Ending February 28, 2020
For the Month Ending January 31, 2020
For the Two Months Ending February 28, 2020
January
February
Expected Unit Sales
Cost Per Pound
Total Pounds Needed for Production
Total Materials Required
Units To Be Produced
Direct Material Pounds Per Unit
Beginning Direct Materials
Beginning Finished Goods Inventory
Total Required Units
Desired Ending Finished Goods Inventory
Direct Materials Purchases
Desired Pounds in Ending Materials Inventory
Required Production Units
Total Cost of Direct Materials Purchases
Add
Less
:
Total Pounds Needed for Production
Units To Be Produced
Total Cost of Direct Materials Purchases
Beginning Direct Materials
Desired Ending Finished Goods Inventory
Direct Materials Purchases
Expected Unit Sales
Beginning Finished Goods Inventory
Required Production Units
Cost Per Pound
Total Materials Required
Desired Pounds in Ending Materials Inventory
Total Required Units
Direct Material Pounds Per Unit
Direct Materials Purchases
Direct Material Pounds Per Unit
Desired Ending Finished Goods Inventory
Cost Per Pound
Units To Be Produced
Total Required Units
Expected Unit Sales
Desired Pounds in Ending Materials Inventory
Required Production Units
Beginning Direct Materials
Total Cost of Direct Materials Purchases
Total Materials Required
Total Pounds Needed for Production
Beginning Finished Goods Inventory
Add
Less
:
Direct Material Pounds Per Unit
Expected Unit Sales
Desired Ending Finished Goods Inventory
Required Production Units
Total Materials Required
Total Pounds Needed for Production
Total Required Units
Units To Be Produced
Total Cost of Direct Materials Purchases
Beginning Direct Materials
Desired Pounds in Ending Materials Inventory
Beginning Finished Goods Inventory
Direct Materials Purchases
Cost Per Pound
Total Cost of Direct Materials Purchases
Expected Unit Sales
Units To Be Produced
Beginning Direct Materials
Total Materials Required
Total Required Units
Beginning Finished Goods Inventory
Cost Per Pound
Desired Ending Finished Goods Inventory
Direct Material Pounds Per Unit
Direct Materials Purchases
Desired Pounds in Ending Materials Inventory
Required Production Units
Total Pounds Needed for Production
Prepare a direct materials budget for January 2020.
FUQUA COMPANY
Direct Materials Budget
For the Quarter Ending February 28, 2020
For the Month Ending January 31, 2020
For the Two Months Ending February 28, 2020
January
Required Production Units
Expected Unit Sales
Cost Per Pound
Total Required Units
Total Pounds Needed for Production
Direct Materials Purchases
Units To Be Produced
Beginning Finished Goods Inventory
Desired Ending Finished Goods Inventory
Beginning Direct Materials (Pounds)
Total Cost of Direct Materials Purchases
Desired Pounds in Ending Materials Inventory
Direct Material Pounds Per Unit
Total Materials Required
Desired Pounds in Ending Materials Inventory
Expected Unit Sales
Total Materials Required
Total Pounds Needed for Production
Units To Be Produced
Beginning Direct Materials (Pounds)
Direct Materials Purchases
Required Production Units
Desired Ending Finished Goods Inventory
Beginning Finished Goods Inventory
Total Required Units
Total Cost of Direct Materials Purchases
Cost Per Pound
Direct Material Pounds Per Unit
Direct Material Pounds Per Unit
Units To Be Produced
Required Production Units
Beginning Direct Materials (Pounds)
Expected Unit Sales
Total Materials Required
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Desired Pounds in Ending Materials Inventory
Total Pounds Needed for Production
Desired Ending Finished Goods Inventory
Total Required Units
Beginning Finished Goods Inventory
Cost Per Pound
Add
Less
:
Cost Per Pound
Required Production Units
Direct Material Pounds Per Unit
Units To Be Produced
Total Cost of Direct Materials Purchases
Desired Ending Finished Goods Inventory
Beginning Direct Materials (Pounds)
Desired Pounds in Ending Materials Inventory
Direct Materials Purchases
Expected Unit Sales
Total Pounds Needed for Production
Total Required Units
Beginning Finished Goods Inventory
Total Materials Required
Desired Pounds in Ending Materials Inventory
Beginning Finished Goods Inventory
Total Required Units
Units To Be Produced
Desired Ending Finished Goods Inventory
Beginning Direct Materials (Pounds)
Total Pounds Needed for Production
Cost Per Pound
Direct Material Pounds Per Unit
Direct Materials Purchases
Expected Unit Sales
Required Production Units
Total Cost of Direct Materials Purchases
Total Materials Required
Add
Less
:
Cost Per Pound
Desired Ending Finished Goods Inventory
Direct Materials Purchases
Desired Pounds in Ending Materials Inventory
Direct Material Pounds Per Unit
Total Pounds Needed for Production
Beginning Finished Goods Inventory
Expected Unit Sales
Total Cost of Direct Materials Purchases
Total Materials Required
Required Production Units
Beginning Direct Materials (Pounds)
Total Required Units
Units To Be Produced
Desired Ending Finished Goods Inventory
Cost Per Pound
Total Materials Required
Total Pounds Needed for Production
Beginning Direct Materials (Pounds)
Total Cost of Direct Materials Purchases
Direct Material Pounds Per Unit
Total Required Units
Units To Be Produced
Desired Pounds in Ending Materials Inventory
Direct Materials Purchases
Beginning Finished Goods Inventory
Expected Unit Sales
Required Production Units
Required Production Units
Cost Per Pound
Desired Pounds in Ending Materials Inventory
Direct Material Pounds Per Unit
Beginning Finished Goods Inventory
Direct Materials Purchases
Total Required Units
Desired Ending Finished Goods Inventory
Total Pounds Needed for Production
Expected Unit Sales
Total Cost of Direct Materials Purchases
Total Materials Required
Units To Be Produced
Beginning Direct Materials (Pounds)
$
Beginning Finished Goods Inventory
Expected Unit Sales
Beginning Direct Materials (Pounds)
Total Required Units
Total Materials Required
Required Production Units
Direct Materials Purchases
Cost Per Pound
Units To Be Produced
Total Cost of Direct Materials Purchases
Desired Ending Finished Goods Inventory
Desired Pounds in Ending Materials Inventory
Total Pounds Needed for Production
Direct Material Pounds Per Unit
$
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
