Please see attachment as well....Thank you

P9-36

Production Budget and direct materials purchases budgets.

Seafood INC. produces shrimp in cans. The sales budget for the first four months of the year is as follow:

Unit Sales Dollar Sales ($)

Jan 200,000 150,000

Feb 240,000 180,000

Mar 220,000 165,000

Apr 200,000 150,000

Company policy requires that ending inventories for each month be 35 % of next month's sales. At the beginning of January, the inventory of shrimp

is 36,000 cans.

Each can of shrimps needs two raw materials: four once of shrimp and one can. Company policy requires that ending inventoryies of raw materials for each month be 20 % of next months production

needs. That policy was met on Jan 1

Required:

1) prepare a production budget for the first quarter of the year. Show the number of cans that should be produced each month as well as for the quoter in total.

2) prepare separate direct materials purchases budgets for cans and shrimp for the months of January and February.

P9-36 Production Budget and direct materials purchases budgets. Seafood INC. produces shrimp in cans. The sales budget for the first four months of the year is as follow: Unit Sales Dollar Sales ($) Jan 200,000 150,000 Feb 240,000 180,000 Mar 220,000 165,000 Apr 200,000 150,000 Company policy requires that ending inventories for each month be 35 % of next month's sales. At the beginning of Januar is 36,000 cans. Each can of shrimps needs two raw materials: four onces of shrimp and one can. Company policy requires that ending inve needs. That policy was met on Jan 1 Required: 1) prepare a production budget for the first quarter of the year. Show the number of cans that should be produced each m 2) perepare separate direct materials purchases budgets for cans and shrimp for the months of January and February. t the beginning of January, the inventory of shrimp requires that ending inventoryies of raw materials for each month be 20 % of next months production ould be produced each month as well as for the quoter in total. nuary and February