Question
Jims Donuts is developing its production and raw materials budget for the next 3 days. The companys management projects sales of 600 batches of donuts
Jims Donuts is developing its production and raw materials budget for the next 3 days. The companys management projects sales of 600 batches of donuts on Monday; 500 batches on Tuesday; 700 on Wednesday and 900 on Thursday.
Jim plans to have 10% of the donuts sold the next day already made the previous day (in ending Finished Goods Inventory). Jim also has 20% of the raw materials of sugar and flour on hand at the beginning of the day before daily purchases are made. Jim uses 2 pounds of sugar and 5 pounds of flour for each batch of donuts made. Jim plans to end Wednesday with 360 pounds of sugar and 900 pounds of flour. There is no Work in Process Inventory.
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