Fuqua Companys sales budget projects unit sales of part 198Z of 10,700 units in January, 12,300 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
Units To Be ProducedDesired Ending Finished Goods InventoryCost Per PoundDirect Materials PurchasesTotal Materials RequiredDirect Material Pounds Per UnitTotal Cost of Direct Materials PurchasesExpected Unit SalesDesired Pounds in Ending Materials InventoryBeginning Direct MaterialsTotal Required UnitsTotal Pounds Needed for ProductionBeginning Finished Goods InventoryRequired Production Units
AddLess: Cost Per PoundTotal Cost of Direct Materials PurchasesDirect Material Pounds Per UnitTotal Required UnitsDesired Pounds in Ending Materials InventoryBeginning Direct MaterialsTotal Materials RequiredDirect Materials PurchasesExpected Unit SalesUnits To Be ProducedBeginning Finished Goods InventoryDesired Ending Finished Goods InventoryTotal Pounds Needed for ProductionRequired Production Units
Beginning Finished Goods InventoryRequired Production UnitsBeginning Direct MaterialsTotal Materials RequiredDirect Material Pounds Per UnitDirect Materials PurchasesTotal Required UnitsUnits To Be ProducedCost Per PoundDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryTotal Cost of Direct Materials PurchasesExpected Unit SalesTotal Pounds Needed for Production
AddLess: Beginning Direct MaterialsTotal Materials RequiredTotal Pounds Needed for ProductionRequired Production UnitsExpected Unit SalesDirect Materials PurchasesTotal Required UnitsDirect Material Pounds Per UnitTotal Cost of Direct Materials PurchasesDesired Pounds in Ending Materials InventoryCost Per PoundUnits To Be ProducedBeginning Finished Goods InventoryDesired Ending Finished Goods Inventory
Total Required UnitsExpected Unit SalesBeginning Direct MaterialsTotal Pounds Needed for ProductionBeginning Finished Goods InventoryTotal Cost of Direct Materials PurchasesCost Per PoundUnits To Be ProducedDesired Pounds in Ending Materials InventoryRequired Production UnitsTotal Materials RequiredDirect Material Pounds Per UnitDesired Ending Finished Goods InventoryDirect Materials Purchases

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Prepare a direct materials budget for January 2020.

FUQUA COMPANY Direct Materials Budget For the Quarter Ending February 28, 2020For the Month Ending January 31, 2020For the Two Months Ending February 28, 2020
		January
Beginning Direct Materials (Pounds)Total Required UnitsUnits To Be ProducedTotal Pounds Needed for ProductionBeginning Finished Goods InventoryDesired Ending Finished Goods InventoryTotal Cost of Direct Materials PurchasesDirect Material Pounds Per UnitTotal Materials RequiredDesired Pounds in Ending Materials InventoryDirect Materials PurchasesCost Per PoundRequired Production UnitsExpected Unit Sales
Units To Be ProducedDirect Materials PurchasesCost Per PoundDesired Ending Finished Goods InventoryBeginning Finished Goods InventoryDesired Pounds in Ending Materials InventoryRequired Production UnitsTotal Materials RequiredTotal Required UnitsTotal Cost of Direct Materials PurchasesExpected Unit SalesTotal Pounds Needed for ProductionDirect Material Pounds Per UnitBeginning Direct Materials (Pounds)
Required Production UnitsBeginning Finished Goods InventoryTotal Required UnitsDesired Pounds in Ending Materials InventoryDirect Materials PurchasesCost Per PoundTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods InventoryExpected Unit SalesTotal Pounds Needed for ProductionDirect Material Pounds Per UnitUnits To Be ProducedTotal Materials RequiredBeginning Direct Materials (Pounds)
AddLess: Beginning Finished Goods InventoryUnits To Be ProducedTotal Materials RequiredDesired Pounds in Ending Materials InventoryDirect Materials PurchasesBeginning Direct Materials (Pounds)Expected Unit SalesTotal Pounds Needed for ProductionTotal Required UnitsDirect Material Pounds Per UnitRequired Production UnitsDesired Ending Finished Goods InventoryTotal Cost of Direct Materials PurchasesCost Per Pound
Expected Unit SalesTotal Required UnitsCost Per PoundTotal Materials RequiredDesired Pounds in Ending Materials InventoryDesired Ending Finished Goods InventoryDirect Material Pounds Per UnitTotal Pounds Needed for ProductionRequired Production UnitsDirect Materials PurchasesBeginning Direct Materials (Pounds)Beginning Finished Goods InventoryTotal Cost of Direct Materials PurchasesUnits To Be Produced
AddLess: Required Production UnitsTotal Pounds Needed for ProductionDirect Material Pounds Per UnitBeginning Finished Goods InventoryExpected Unit SalesDesired Ending Finished Goods InventoryDesired Pounds in Ending Materials InventoryTotal Required UnitsBeginning Direct Materials (Pounds)Units To Be ProducedTotal Materials RequiredTotal Cost of Direct Materials PurchasesCost Per PoundDirect Materials Purchases
Beginning Direct Materials (Pounds)Total Required UnitsRequired Production UnitsTotal Cost of Direct Materials PurchasesDesired Pounds in Ending Materials InventoryBeginning Finished Goods InventoryExpected Unit SalesCost Per PoundDirect Material Pounds Per UnitDirect Materials PurchasesTotal Pounds Needed for ProductionDesired Ending Finished Goods InventoryTotal Materials RequiredUnits To Be Produced
Expected Unit SalesBeginning Direct Materials (Pounds)Direct Materials PurchasesTotal Required UnitsTotal Cost of Direct Materials PurchasesDesired Pounds in Ending Materials InventoryTotal Materials RequiredRequired Production UnitsCost Per PoundUnits To Be ProducedBeginning Finished Goods InventoryDirect Material Pounds Per UnitTotal Pounds Needed for ProductionDesired Ending Finished Goods Inventory		$
Beginning Direct Materials (Pounds)Cost Per PoundDesired Pounds in Ending Materials InventoryTotal Cost of Direct Materials PurchasesDirect Materials PurchasesBeginning Finished Goods InventoryDirect Material Pounds Per UnitRequired Production UnitsTotal Materials RequiredTotal Required UnitsTotal Pounds Needed for ProductionExpected Unit SalesDesired Ending Finished Goods InventoryUnits To Be Produced		$