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i need help with this problem. all the info is inthe pics. all boxes thag have a flag need to be filled The following information
i need help with this problem. all the info is inthe pics. all boxes thag have a flag need to be filled
The following information relates to a company that makes Product XYZ. Each unit requires four pounds of material D20. Inventory requirements are as follows: a. The finished goods inventory on hand at the end of each month must be equal to 5,000 units plus 26% of the next month's sales. The finished goods inventory on March 31 is budgeted based on this requirement. b.The raw materials inventory on hand at the end of each month must be equal to one- half of the following month's production needs for raw materials. The raw materials inventory on March 31 for material D20 is budgeted based on this requirement. c. The company maintains no work in process inventories. A sales budget for the company for the second and third quarters of the year follows. April May June July August September Budgeted Sales in Units 42.000 52.000 72,000 37,000 22,000 12.000 Com Production April Budgeted sales Sad Add: Beginning inventory Add: Ending inventory Deduct: Beginning inventory Deduct: Ending inventory Required: 1. Prepare a production budget for the months April, May, June and July. Company Production Budget April May June July Budgeted sales Total needs Required production 3. Prepare a direct materials budget showing the quantity of material D20 to be purchased for April May, June and for the quarter in total. R. Company XYZ Direct Materials Budget April May June Second Quarter Production needs (lbs) Total Material ABC needs Material ABC purchases Step by Step Solution
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