Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Soles, Sales

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Soles, Sales for the year are expected to totai 1,300,000 units. Quarterly siles are 18\%, 27\%, 24\%, and 31\%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct moterials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain taw materials inventories at 1026 of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 498,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020 . Prepare the sales, production, and direct materials budgets by quarters for 2020. Prepare the sales, production, and direct materials budgets by quarters for 2020 . PARGO COMPANY Production Budget Quarter 1. 2 PARGO COMPANY Direct Materlals Budget PARGO COMPANY Production Budget Quarter 2. 3 4 Year PARGO COMPANY Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Soles, Sales for the year are expected to totai 1,300,000 units. Quarterly siles are 18\%, 27\%, 24\%, and 31\%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct moterials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain taw materials inventories at 1026 of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 498,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020 . Prepare the sales, production, and direct materials budgets by quarters for 2020. Prepare the sales, production, and direct materials budgets by quarters for 2020 . PARGO COMPANY Production Budget Quarter 1. 2 PARGO COMPANY Direct Materlals Budget PARGO COMPANY Production Budget Quarter 2. 3 4 Year PARGO COMPANY

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

Principles Of Cost Accounting

Authors: Edward J. Vanderbeck

15th Edition

978-0840037039, 0840037031

More Books

Students also viewed these Accounting questions