Question
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 420, 400, 472, 432, and 500 respectively. Required: 1.
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 420, 400, 472, 432, and 500 respectively. Required: 1. The companys policy for ending finished goods is 25 percent of next month's sales. Prepare a production budget for the first quarter. 2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Prepare a direct materials purchases budget with respect to LED lights for the first quarter.
1)
| Jan | Feb | Mar | 1st Quarter | |
| Bugeting production in units |
|
2)
| Jan | Feb | Mar | 1st Quarter | |
| Budgeted cost of direct material purchases |
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
