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Please fill this the ans table thanks. Below is the estimated sales in units for Alan Shearer Company for the next six quarters: Quarter Estimated
Please fill this the ans table thanks.
Below is the estimated sales in units for Alan Shearer Company for the next six quarters: Quarter Estimated sales in units Q1 2,000 5,000 Q2 Q3 4,000 94 1,000 195 2,500 Q6 6,000 Production policy requires: 1. Closing inventory to equal 25% of the following quarter's sales 2. Each unit produced requires 2 kg of raw materials. 3. The purchase price of 1 kg of raw materials is $3 4. The purchase price of the raw materials increases by 5% at the beginning of the second quarter 5. Closing raw materials inventor to equal to 10% of the next quarter's production needs. 6. At the beginning of the first quarter both finished goods and raw materials inventory balances are expected to be at the required policy. Required. 1. Prepare the production budget in units and in dollars on a quarterly basis for the first four quarters. 2. Prepare the raw materials purchases budget in units and in dollars on a quarterly basis for the first four quarters. 1. Production budget Q1 Q2 Q3 04 Q5 Q6 Sales (units) Desired clos. Inventory 25% = Total requirements Less Beg. inventory = Required production Place answer to requirement 2 in the table below 2. Raw materials purchases budget Raw Materials Purchases Budget Q1 Q2 Q3 Q4 Q5 Production requirements (units) x Raw materials per unit (kg) = Production requirements (kg) Add Desired Clos. Inventory (10% of next quarter production) = Total requirements (kg) Less Beg. Inventory = Required purchases (kg) x Purchase price per kg I= Required Purchases ($)Step by Step Solution
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