Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pearl Products manufactures and distributes toys throughout the country. Three cubic centimeters of Solvent H compound are required to manufacture each unit of Supermix, one

image text in transcribedimage text in transcribed Pearl Products manufactures and distributes toys throughout the country. Three cubic centimeters of Solvent H compound are required to manufacture each unit of Supermix, one of the company's products. The company is planning its raw materials needs for the third quarter. To keep production and sales moving smoothly, the company has the following inventory requirements: a) The Finished Goods Inventory on hand at the end of each month must equal 3,000 units of Supermix plus 20% of the next month's sales. The Finished Goods Inventory on June 30 is budgeted to be 10,000 units. b) The Raw Materials Inventory on hand at the end of each month must equal 1/2 of the following month's production needs for raw materials. The Raw Materials Inventory on June 30 is budgeted to be 54,000 cubic centimeters of Solvent H. Solvent H costs $5 per cubic centimeter. c) The company does not maintain any WIP Inventory. d) The expected monthly unit sales for Supermix for the third and fourth quarters of the year is below: The expected selling price per unit is $105. Required 1) Prepare a sales budget for Supermix for the months of July, August, September, and October 2) Prepare a production budget for Supermix for the months of July, August, September, and October. 3) Prepare a direct materials budget for Solvent H showing the quantity of solvent to be purchased for the months of July, August, and September

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

Food And Beverage Cost Control

Authors: Jack E. Miller, Lea R. Dopson, David K. Hayes

3rd Edition

0471273546, 978-0471273547

More Books

Students also viewed these Accounting questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago

Question

How would you describe Mark Zuckerberg as a team leader?

Answered: 1 week ago