Fuqua Companys sales budget projects unit sales of part 198Z of 10,100 units in January, 12,600 units in February, and 13,700 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 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 production budget for January and February 2020.

FUQUA COMPANY Production Budget For the Month Ending January 31, 2020For the Two Months Ending February 28, 2020For the Quarter Ending February 28, 2020
		January		February
Desired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitExpected Unit SalesDirect Materials PurchasesTotal Materials RequiredTotal Required UnitsRequired Production UnitsBeginning Finished Goods InventoryTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesUnits To Be ProducedBeginning Direct MaterialsCost Per Pound
AddLess : Desired Ending Finished Goods InventoryTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionBeginning Finished Goods InventoryUnits To Be ProducedExpected Unit SalesTotal Required UnitsTotal Materials RequiredDesired Pounds in Ending Materials InventoryCost Per PoundDirect Material Pounds Per UnitBeginning Direct MaterialsDirect Materials PurchasesRequired Production Units
Cost Per PoundTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Required UnitsTotal Pounds Needed for ProductionDesired Ending Finished Goods InventoryUnits To Be ProducedBeginning Finished Goods InventoryDirect Materials PurchasesDirect Material Pounds Per UnitTotal Materials RequiredDesired Pounds in Ending Materials InventoryExpected Unit SalesRequired Production Units
AddLess : Total Materials RequiredBeginning Finished Goods InventoryCost Per PoundDesired Pounds in Ending Materials InventoryDirect Material Pounds Per UnitTotal Pounds Needed for ProductionDesired Ending Finished Goods InventoryDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Required UnitsTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsUnits To Be Produced
Direct Material Pounds Per UnitRequired Production UnitsCost Per PoundUnits To Be ProducedDirect Materials PurchasesDesired Ending Finished Goods InventoryBeginning Direct MaterialsTotal Materials RequiredExpected Unit SalesTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionTotal Required UnitsBeginning Finished Goods InventoryDesired Pounds in Ending Materials Inventory

Prepare a direct materials budget for January 2020.

FUQUA COMPANY Direct Materials Budget For the Quarter Ending February 28, 2020For the Two Months Ending February 28, 2020For the Month Ending January 31, 2020
		January
Total Pounds Needed for ProductionBeginning Direct Materials (Pounds)Total Required UnitsDesired Pounds in Ending Materials InventoryBeginning Finished Goods InventoryDirect Material Pounds Per UnitRequired Production UnitsCost Per PoundUnits To Be ProducedDirect Materials PurchasesTotal Materials RequiredExpected Unit SalesTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods Inventory
Direct Materials PurchasesDirect Material Pounds Per UnitDesired Pounds in Ending Materials InventoryExpected Unit SalesUnits To Be ProducedTotal Cost of Direct Materials PurchasesRequired Production UnitsCost Per PoundTotal Materials RequiredTotal Pounds Needed for ProductionBeginning Direct Materials (Pounds)Total Required UnitsBeginning Finished Goods InventoryDesired Ending Finished Goods Inventory
Direct Material Pounds Per UnitDesired Pounds in Ending Materials InventoryTotal Materials RequiredDesired Ending Finished Goods InventoryTotal Cost of Direct Materials PurchasesDirect Materials PurchasesExpected Unit SalesRequired Production UnitsCost Per PoundTotal Required UnitsTotal Pounds Needed for ProductionUnits To Be ProducedBeginning Direct Materials (Pounds)Beginning Finished Goods Inventory
AddLess : Required Production UnitsTotal Cost of Direct Materials PurchasesBeginning Finished Goods InventoryDesired Ending Finished Goods InventoryBeginning Direct Materials (Pounds)Expected Unit SalesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be ProducedDirect Materials PurchasesCost Per PoundDesired Pounds in Ending Materials InventoryDirect Material Pounds Per Unit
Desired Pounds in Ending Materials InventoryTotal Materials RequiredBeginning Direct Materials (Pounds)Direct Materials PurchasesTotal Pounds Needed for ProductionExpected Unit SalesDesired Ending Finished Goods InventoryTotal Required UnitsUnits To Be ProducedBeginning Finished Goods InventoryCost Per PoundRequired Production UnitsTotal Cost of Direct Materials PurchasesDirect Material Pounds Per Unit
AddLess : Desired Pounds in Ending Materials InventoryTotal Pounds Needed for ProductionTotal Required UnitsTotal Materials RequiredDirect Material Pounds Per UnitCost Per PoundExpected Unit SalesUnits To Be ProducedDirect Materials PurchasesBeginning Direct Materials (Pounds)Beginning Finished Goods InventoryDesired Ending Finished Goods InventoryRequired Production UnitsTotal Cost of Direct Materials Purchases
Required Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionUnits To Be ProducedTotal Required UnitsBeginning Direct Materials (Pounds)Direct Materials PurchasesExpected Unit SalesBeginning Finished Goods InventoryDirect Material Pounds Per UnitCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials Inventory
Units To Be ProducedDirect Material Pounds Per UnitBeginning Direct Materials (Pounds)Direct Materials PurchasesExpected Unit SalesDesired Pounds in Ending Materials InventoryTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionCost Per PoundBeginning Finished Goods InventoryTotal Required UnitsDesired Ending Finished Goods InventoryRequired Production UnitsTotal Materials Required		$
Direct Materials PurchasesCost Per PoundExpected Unit SalesRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsUnits To Be ProducedDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryBeginning Finished Goods InventoryBeginning Direct Materials (Pounds)Direct Material Pounds Per Unit		$

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