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Is this a problem with my textbook connect software or is this actually the right answer? If so how is required production of lights different
Is this a problem with my textbook "connect" software or is this actually the right answer? If so how is required production of lights different by of budgeted unit sales??
Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year.
tableFirst,Second,Third,FourthBudgeted unit sales,Quarter,Quarter,Quarter,Quarter
Each light requires two separate LED bulbs, each of which costs $ To ensure enough LED bulbs are on hand to support shortterm production if a problem arises with the sole supplier, Fortin Limited maintains an ending inventory of of the following quarter's production needs. A total of LED bulbs will be on hand to start the first quarter of the upcoming fiscal year. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year.
Required:
Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal year. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total.
tableFORTIN LIMITEDDirect Materials Budget Year Quarter,,YearFirst,,sond,,Third,,Fourth,Required production of lights,,Number of bulbs per light,,Total production needsbulbs,FFFAdd: Desired ending inventorybulbs,grad,,Total needsbulbs,FFFLess: Beginning inventorybulbs,grad,,Required purchasesbulbs,,Total cost of purchases,$$$$$
Explanation
Desired ending inventorybulbs: of the following month's production.
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