Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales July 20,000 August 35,000 September 25,000 October 30,000 Sales price

Johnson Corporation has the following budgeted sales for the selected four-month period:

Month

Unit Sales

July

20,000

August

35,000

September

25,000

October

30,000

Sales price per unit is $180

Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month. There was 4,000 units in beginning inventory on July 1st.

Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30 percent of the needs for the next month.

Desired ending inventory for September is 25,200 pounds of material. Beginning inventory for July was 20,700 pounds of material.

Required:

A.

Prepare a sales budget for July, August, and September and in total for the quarter.

B.

Prepare production budgets for July, August, and September and in total for the quarter.

C.

Prepare a direct materials purchases budget in pounds and dollars for July, August, and September and in total for the quarter.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

DCAA Contract Audit Manual Volume 1

Authors: Defense Contract Audit Agency

1st Edition

B08HTL19V5, 979-8684992995

More Books

Students also viewed these Accounting questions

Question

Define a personal automobile policy (PAP).

Answered: 1 week ago