Question
On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021: 1
On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021: 1 Sales units: First quarter 4,800; second quarter 5,900; third quarter 7.000 2 3. Ending raw materials inventory: 40% of the next quarter's production requirements Ending finished goods inventory: 25% of the next quarter's expected sales units Third-quarter production: 7.200 units The ending raw materials and finished goods inventories at December 31, 2020, had the same percentages for production and sales that are budgeted for 2020. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.
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