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need help with the final part Coronado Company's sales budget projects unit sales of part 1982 of 11,800 units in January, 13400 units in February
need help with the final part
Coronado Company's sales budget projects unit sales of part 1982 of 11,800 units in January, 13400 units in February and 16,100 units in March. Each unit of part 1987 requires 4 pounds of materials, which cost $ 2 per pound. Coronado Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2021. (a) epare a production budget for January and February 2022. CORONADO COMPANY Production Budget For the Two Mouths Ending February 28, 2022 January February Expected Unit Sales 11800 1340 Add Desired Ending Finished Goods Inventory 2680 322 Total Required Units 14480 1662 Less vi 2360 2680 Beginning Finished Goods Inventory Required Production Units 12120 1394 Direct Materials Budget For the Month Ending January 31, 2022 January Required Production Units 12120 Direct Material Pounds Per Unit 4. Total Pounds Needed for Production 48480 Add Desired Ending Finished Goods Inventory Beginning Finished Goods Inventory Less Desired Pounds in Ending Materials Inventory 19392 Direct Materials Purchases Cost Per Pound $ 2 Total Cost of Direct Materials Purchases $ Step by Step Solution
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