managerial accounting- Variable Costing and Budgeting

Symphony Electronics produces wireless speakers for outdocr use on patios. decks, efc Their most popular model is the All Weather and requires fout separate X112 components per unit The company is now planning raw materlat needs for the second quarter. Sales of the All Weather are the highest in the second quanter of each year as customers prepare for the summer season. The company has: the following inventory requrements: a. The finished goods invertory on hand at the end of each month must be equal to 14.000 units plus 10% of the next month's sales. The finshed goods inverdory on March 31 is budgeted to be 26,700 units. b. The raw materials imventory on hand it the end of each month must be equal to 20 sor the following moriths production needs for raw materials. The raw materials invertory on March 31 for X1. 12 is budgeted to be 97700 components. c. The comoany mointains no work in proctiss inventorien. A sales buckget for the wir Weather speaker h as follows: Required: 1. Piepare a production budget for tive Al Weather for Apro, Maw. Aine and July 2. Prepare a direct materials purchases budpet showing the quantity of XL. 12 components to be purchased for April, May and June and for the quarter in total