Name:

Dominic Sztaba

Your score:

$0\%$

Dominic Company, a manufacturer, predicts sales of $6,750$ units in January, $6,300$ units in February, $8,550$ units in March, and $9,400$ units in April. The company wants each month's ending finished goods inventory to equal $50\%$ of next month's predicted unit sales. Beginning finished goods inventory for January is $3,375$ units. Each unit of finished goods requires $0\mathrm{.}45$ pounds of direct materials at a cost of $$11\mathrm{.}00$ per pound, and $3\mathrm{.}5$ hours of direct labor at a cost of $$21$ per hour.

Additionally, the company wants each month's ending raw materials inventory to equal $20\%$ of next month's budgeted production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget.

Dominic Company

Budget Assumptions

For the months of January, February, and March $2024$

Dominic Company

Production Budget

For the months of January, February, and March $2024$

Next month's budgeted sales $($units$)$

Ratio of inventory to future month's sales

Budgeted ending inventory $($units$)$

Add: Budgeted sales $($units$)$

Required units of available production

Deduct: Beginning inventory $($units$)$

Budgeted units to produce

$,$ February, and March $2024$

$\backslash$table$[[$January February,March$],[,,],[,,],[,,],[,,],[,,],[,,],[,,]]$

Dominic Company

Direct Materials Budget

For the months of January, February, and March $2024$

$\backslash$table$[[$January$,$Mebruary$],[$Budgeted units to produce,,,,$],[,,,,],[$Materials requirements per unit,,,,$],[$Materials needed for production $($pounds$),,,,]]$